Increase in Losses Indicates Bottoming Out for Bitcoin and Ethereum Prices
The Net Unrealized Profit or Loss (NUPL) metric for Bitcoin (BTC) and Ethereum (ETH) is showing a historical trend, suggesting that the crypto market may have reached its local bottom. This comes as the euphoria surrounding spot Bitcoin ETF filings begins to fade, resulting in a decline in asset prices.
Bitcoin’s Unrealized Profit Reaches Five-Month Low
According to Glassnode, the BTC Relative Unrealized Profit has dropped to a five-month low of 0.402 at the current price level. This indicates that more traders are experiencing losses, which often signifies that the asset price is approaching its bottom. Despite this, the current BTC price is still significantly higher than its value at the beginning of 2023.
Ethereum Price Nearing Bottom
The number of addresses in profit for Ethereum, based on a 7-day moving average, is also at a five-month low. This suggests that the price of Ethereum is approaching its bottom. CoinGape previously reported that the $1700 to $1577 range is crucial for the next major move for Ethereum. A breakout from this range could potentially lead to a bullish price movement.
Bitcoin Price Movement Depends on ETF Filings
The crypto market has recently been experiencing a prolonged sideways movement in Bitcoin’s price around $30,000. This has been influenced by the developments surrounding spot Bitcoin ETF filings. The U.S. Securities and Exchange Commission (SEC) is expected to provide updates on these filings, including one from Blackrock, in the first week of September 2023. However, it is likely that the SEC officials will not make much progress during the initial deadlines.
Hot Take: Opportunity for Crypto Investors
The dip in profitability for both Bitcoin and Ethereum suggests that these cryptocurrencies may be nearing their bottom prices. This could present a potential opportunity for crypto investors to enter the market at a favorable point. However, it’s important to closely monitor the developments surrounding spot Bitcoin ETF filings as they may influence future price movements.
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