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 metric to track Bitcoin’s price alongside investor sentiment. In simple terms, it measures whether holders are in profit or at a loss, grouping feelings into emotional phases such as fear, optimism, belief, and euphoria.
Consequently, the chart reveals a recurring behavioral pattern. Sharp price increases push NUPL into upper zones labeled “Belief/Denial” and “Euphoria/Greed,” periods often preceding market tops. Conversely, sharp declines drive NUPL into negative “Hope/Fear” zones, signaling potential market bottoms and recovery opportunities.
Market Behavior and Current Outlook
Analyst Captain Faibik highlights that Bitcoin recently completed a +36% correction, contrary to earlier skepticism from the community. He emphasizes that Bitcoin is now poised for a bullish rally. Moreover, he warns that waiting for another dip may cause investors to miss entry opportunities.
Faibik advises, “In next few days, Bitcoin will breakout & then everyone will rush in with FOMO entries which won’t be beneficial.” Hence, timely action is crucial to avoid being late to the market surge.
Recovery phases often sit in middle NUPL zones, marked as “Optimism/Anxiety,” indicating cautious investor confidence. These times also demonstrate that sentiment-driven markets are not at all random. Bitcoin cycles are heavily influenced by human emotions such as fear, greed, and optimism. As a result, traders who keep an eye on these signals can predict significant movements before the market as a whole responds.