As the price of Bitcoin increases, more and more on-chain signals point to an overheating cryptocurrency market. These signals are proving to be particularly relevant in the context of Bitcoin’s impending halving.

BeInCrypto presents 4 on-chain signals that indicate the possibility of an impending correction. This is especially relevant from the point of view of the current price action, which shows numerous similarities to the 2019 fractal.

Back then, the BTC price also experienced a strong uptrend, only to see a deep correction a few months before halving. Does the on-chain data support these predictions? Will the halving period be correlated with declines in the Bitcoin price?

On-Chain Signals: NUPL Enters the Belief Region

In addition to the numerous technical similarities between the current Bitcoin market situation and the 2019 fractal, on-chain analysis also points out parallels. The first two on-chain signals concern the famous Net Unrealized Profit/Loss (NUPL) indicator.

NUPL is the difference between relative unrealized profit and relative unrealized loss. This ratio can also be calculated by subtracting the realized capitalization from the market capitalization and dividing the result by the market capitalization. Moreover, NUPL comes in several variations: for all market investors, for long-term holders (LTH), and for short-term holders (STH).

In the chart of the bas

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Author: Jakub Dziadkowiec

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