Net Unrealised Profit and Loss	NUPL

INTERVALS 
Tier 1:  1M, 1W, 3D, 1D	
Tier 2:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m	
Tier 3:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m

NUPL (Net Unrealized Profit/Loss) Indicator

What is it?

The NUPL (Net Unrealized Profit/Loss) indicator allows you to assess whether the current price of Bitcoin is overvalued or undervalued. This tool analyzes the difference between unrealized profit and unrealized loss in the Bitcoin network, indicating whether the majority of network participants are in a state of profit or loss.

How to interpret NUPL?

NUPL is an indicator that helps understand the overall emotional state of the market. It can signal greed when the majority of participants are in profit (high NUPL values) or fear when the majority are in loss (low NUPL values).

Pros
A high NUPL value may suggest a moment when markets are overheated – a potential sell signal
A low NUPL value may indicate moments when the market is undervalued – a potential buying opportunity

Warnings
A high NUPL, while it may signal overvaluation, is not an infallible sell signal – markets can remain irrational longer than one can predict
A low NUPL points to potential bottoms but does not guarantee that the price won't go lower

Delays in on-chain data metrics in exceptional circumstances can reach up to 40 minutes. Due to the structure of the Bitcoin blockchain, delays in these metrics typically range around 20 minutes.

NUPL and 10-year BTC Price History

This chart combines NUPL with historical Bitcoin prices, allowing you to observe how unrealized profits and losses have changed in relation to prices. You can see how in the past, high NUPL values often correlated with price peaks, and low values with market bottoms.

Updated on: 07/03/2024