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Bitcoin’s (BTC) price has been moving around $46,500 for the past couple of days failing to consolidate above $47,000 key resistance. The top cryptocurrency started August on a bullish note breaking out of the two-month-long price zone of $30K-$40K. It also broke past the $45K price resistance to record a new two-month high of $46,763.
The top cryptocurrency is now eyeing a $50K price target before retesting its previous all-time high of $64,683. Key on-chain metrics are flashing green again, but $50K seems to be a formidable resistance at this point. A quick analysis indicates that Bitcoin might face a minor retrace to the sub $42K level before blasting off above $50K.
Bitcoin Net Profit Turns Positive
The net unrealized profit/loss (NUPL) reached 0.52 meaning the Bitcoin network is in net profit. NUPL is the difference between the unrealized profit and unrealized loss and indicates whether the whole market is in net profit or loss. Until the first week of August, the NUPL value indicated a net loss for the Bitcoin holders.
The Glassnode data suggest the sudden recovery of NUPL value indicate two key scenarios for the market,
- Bear market relief rallies
- Disbelief phases of bull markets
Looking at the current market trend, the NUPL value mostly coincides with the second scenario as the top cryptocurrency has broken out of a prolonged bearish phase starting in May.
This means that on aggregate, STHs are in a slight profit relative to their on-chain costs basis.
The amount of Bitcoin held on crypto exchanges continue to decline indicating another bullish sentiment, while the price movement has broken above 200 MA as well as the long-held RSI zone. Many analysts believe the top cryptocurrency is just waiting for a trigger like London Hardfork for ETH to make its move up, but sooner or later it would break past the $50K barrier.
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