NUPL ratio shows why long-term holders are better market top indicators
Summary
Entity-adjusted Bitcoin metrics provide a more refined view of market sentiment by excluding non-economic transactions such as internal transfers. Metrics like LTH-NUPL and STH-NUPL are essential for understanding net unrealized profit and loss among long-term and short-term holders, which is key in predicting market tops and bottoms. For example, when the LTH-NUPL crosses above 0.7, it often signals the start of a euphoria or greed phase.
