• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Nvidia Top Executive Says Crypto Adds Nothing of Value to Society but AI Does: Report

2023-03-29

Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

2023-03-28

Disney Metaverse Division Reportedly Scrapped

2023-03-28
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Disney Metaverse Division Reportedly Scrapped

    2023-03-28

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Nvidia Top Executive Says Crypto Adds Nothing of Value to Society but AI Does: Report

    2023-03-29

    Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

    2023-03-28

    CFTC ‘Pretty Confident’ in Case Against Binance, Says Chairman Rostin Behnam

    2023-03-28

    OKX becomes latest exchange to apply for Hong Kong VASP license

    2023-03-28

    Balaji Srinivasan Says Millions of Worried Depositors Could Wire Money to Bitcoin As Banks Get Too Big To Escape

    2023-03-28
  • Learn

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17

    How to Short Sell Bitcoin

    2023-03-17

    Why Decentralized Exchanges Are On Rise? Can INNODEX Surpass Binance and Uniswap?

    2023-03-15
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover
Bitcoin

CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

2023-01-26No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

CryptoQuant’s Bitcoin on-chain PnL index has surged above its 365-day MA recently, a crossover that has historically signaled early bull markets.

Bitcoin On-Chain PnL Index Has Formed A Bullish Crossover

As per data from the on-chain analytics firm CryptoQuant, the index is indicating a buy signal for BTC right now. The “CryptoQuant on-chain PnL index” is a metric that combines three different indicators into one to point out tops, bottoms, and cyclical shifts in the price of Bitcoin.

The first of the metrics that the PnL index uses is the “MVRV ratio,” which is a model that checks whether BTC is currently overvalued or undervalued by comparing the crypto’s market cap with a fair value model called the “realized cap.”

The second relevant indicator here is the “NUPL,” which tells us whether the Bitcoin market as a whole is currently carrying an unrealized profit or an unrealized loss. This metric can provide hints about whether there is a buying or selling motive among investors right now.

Finally, there is the Spent Output Profit Ratio (SOPR), which tracks whether the average holder is selling at a loss or a profit at the moment. The SOPR shouldn’t be confused with the NUPL, as the quantity being measured by the NUPL is the “unrealized” profit/loss, which is the profit or loss that investors have accumulated but are yet to harvest (or “realize”) as they are still to sell their coins.

There are actually two SOPR metrics of interest here; the version specifically for the short-term holders (STHs) and that for the long-term holders (LTHs). The entire Bitcoin market can be divided into these two groups, with the criteria being that holders who bought within the last 155 days fall into the former cohort, while those who bought before that fall into the latter.

Now, here is the data for the CryptoQuant on-chain PnL index, which takes all these different Bitcoin indicators and combines them into one model for the crypto:

Bitcoin CryptoQuant PnL Index

Looks like the value of the metric has shot up | Source: CryptoQuant

As displayed in the above graph, the CryptoQuant on-chain PnL index has sharply risen out of the historical bottom zone recently. The chart also includes the curve for the 365-day moving average (MA) of the metric, and it’s clear that the index has crossed above this MA with the latest surge.

Historically, such a crossover during bearish periods has signaled a transition toward an early bull market. If this pattern holds true this time as well, then the current breakout could be good news for the ongoing rally.

However, back in 2015, an initial breakout like the current one did end up failing, and it was only later that a successful transition took place. Nonetheless, CryptoQuant notes “although it is still possible for the index to fall back below, the CryptoQuant PnL Index has issued a definitive buy signal for BTC.”

BTC Price

At the time of writing, Bitcoin is trading around $22,900, up 11% in the last week.

Bitcoin Price Chart

BTC seems to be showing stale price action | Source: BTCUSD on TradingView

Featured image from Hans Eiskonen on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Source link

Bitcoin Bullish Crossover CryptoQuants Forms Index PnL
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Balaji Srinivasan Says Millions of Worried Depositors Could Wire Money to Bitcoin As Banks Get Too Big To Escape

2023-03-28

CFTC Goes After Binance and Changpeng Zhao With Lawsuit, Bitcoin (BTC) and Crypto Markets Get Rocked

2023-03-27

Crypto Analyst Nicholas Merten Says Fed Money Printing Won’t Spark New Bitcoin (BTC) Rally – Here’s Why

2023-03-26

Bitcoin and Ethereum Investors Are Not Flinching, US Pressure on Crypto Will Backfire: Chris Burniske

2023-03-26
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Web3 can help artists and companies manage music metadata: B2B music exec

2023-01-14

Department of Justice Seizes $34,000,000 in Crypto From Florida Man Accused of Selling Stolen Data on Dark Web

2022-04-06

Why Bitcoin Could Revisit $27K, Peter Brandt Says

2022-04-23

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Nvidia Top Executive Says Crypto Adds Nothing of Value to Society but AI Does: Report

2023-03-29

Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

2023-03-28

Disney Metaverse Division Reportedly Scrapped

2023-03-28
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$27,442.001.56%
  • ethereumEthereum(ETH)$1,786.574.13%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.02%
  • binancecoinBNB(BNB)$313.871.92%
  • usd-coinUSD Coin(USDC)$1.000.09%
  • rippleXRP(XRP)$0.5412.81%
  • cardanoCardano(ADA)$0.3794829.20%
  • Lido Staked EtherLido Staked Ether(STETH)$1,781.137.25%
  • dogecoinDogecoin(DOGE)$0.0744622.68%