Bitcoin Selling Pressure is Decreasing: New Signals are Coming

Recently, a noteworthy development has occurred in the Bitcoin (BTC) market. The decrease in selling pressure for Bitcoin is increasing hopes among investors that a potential bottom may be approaching. Market analysts correlate this situation with the return of a crucial indicator measuring this condition, the NUP (Net Unrealized Profit) metric, to critical levels.

A CryptoQuant analyst noted that the NUP metric is at 0.476, emphasizing that this decline suggests the market is preparing for a short-term recovery. NUP is known as an indicator measuring the amount of Bitcoin held profitably by investors. As its value increases, the number of investors in profit also rises, leading to increased selling pressure. However, when NUP falls below 0.5, it typically coincides with the formation of short-term bottoms and indicates the beginning of price recovery periods.

Looking at historical data, the drop of the NUP level to this point indicates that selling pressure has weakened and that investors are creating a new equilibrium. According to the CryptoQuant analyst, the current level suggests that investors have largely completed their profit realizations, which could allow recent market closures to regain strength. In this context, the decline of the NUP level could provide stability in the market as long-term investors maintain their holding tendencies.

Recent data shows that Bitcoin is preparing for a short-term recovery movement. According to the CryptoQuant analyst, the current drop in the NUP level has often been a precursor to rallies in the past. This situation creates expectations among investors that, along with the decreased selling pressure, prices may gain upward momentum.