{"id":600384,"date":"2024-03-30T01:00:10","date_gmt":"2024-03-30T01:00:10","guid":{"rendered":"https:\/\/ktsl888.com\/?p=600384"},"modified":"2024-06-11T07:10:43","modified_gmt":"2024-06-11T07:10:43","slug":"simple-strategy-buying-selling-bitcoin-analyst","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/simple-strategy-buying-selling-bitcoin-analyst\/","title":{"rendered":"What’s A Simple Strategy For Buying & Selling Bitcoin? This Analyst Answers"},"content":{"rendered":"

An analyst has revealed a simple strategy for buying and selling Bitcoin using the historical pattern followed by two BTC on-chain indicators.<\/p>\n

These Bitcoin On-Chain Indicators Have Followed A Specific Pattern Historically<\/h2>\n

In a post<\/a> on X, CryptoQuant author Axel Adler Jr. discussed a simple strategy for timing buying and selling moves for Bitcoin. The strategy is based on the trend witnessed historically in two BTC on-chain metrics: the Net Unrealized Loss (NUL) and Net Unrealized Profit (NUP).<\/p>\n

As their names suggest, these indicators keep track of the total amount of unrealized loss and unrealized profit that the investors are currently carrying.<\/p>\n

Related Reading: Coinbase Sees Largest USDC Inflow Ever, What This Could Mean For Bitcoin<\/a><\/div>\n

These metrics work by going through the transaction history of each coin in circulation to see what price it was last transacted at. Assuming that the last transfer of each coin was the last time it changed hands, the price at its instant would act as its current cost basis<\/a>.<\/p>\n

If the previous price for any coin was less than the current spot price of the cryptocurrency, then that coin is currently carrying a profit. The NUP subtracts the two to calculate the exact unrealized gain for the coin.<\/p>\n

Similarly, the NUL does the same for coins that have their cost basis above the latest value of the asset. These indicators then sum up this value for the entire supply and divide the sum by the current market cap.<\/p>\n

Now, first, here is a chart shared by the analyst for the NUL that reveals a pattern that the metric has been following throughout the history of Bitcoin:<\/p>\n

\"Bitcoin<\/p>\n

The value of the metric seems to have been heading down in recent days | Source: @AxelAdlerJr on X<\/a><\/pre>\n

The Bitcoin NUL appears to have historically broken above the 0.5 level when the asset’s price has traded around bear market<\/a> lows. According to Axel, the indicator in this territory would be the moment to buy more.<\/p>\n

Recently, the metric has been floating around the zero mark, meaning that there has been any unrealized loss being held by the investors. This makes sense, as the cryptocurrency has set\u00a0new all-time highs (ATHs)<\/a>. Naturally, 100% of the supply goes into profit when an ATH is set.<\/p>\n

Similar to the pattern in the NUL, the NUP has been above the 0.7 level during major tops in the past, suggesting that it may be a good opportunity to sell when the indicator is in this zone.<\/p>\n

\"Bitcoin<\/p>\n

Looks like the value of the indicator has been climbing up recently | Source: @AxelAdlerJr on X<\/a><\/pre>\n

As is visible in the chart, the NUP has been marching up with the recent rally in Bitcoin. Still, so far, the indicator hasn’t broken above the seemingly important 0.7 level, implying that the market may not yet be in an overheated place where selling would be ideal, at least according to this strategy.<\/p>\n

The graphs of the two indicators, though, show that neither of them flagged the exact tops or bottoms in the asset. It’s especially prominent in the data of the NUP, where the metric signaled “sell” during tops that were merely halfway through the bull run.<\/p>\n

Related Reading: Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains<\/a><\/div>\n

That said, buying during the points flagged by the NUL and then selling at the overheated NUP values would have historically been profitable. In that sense, this would indeed be a “simple” strategy for the asset.<\/p>\n

It remains to be seen, though, whether these patterns will continue to hold in the current Bitcoin cycle as well.<\/p>\n

BTC Price<\/h2>\n

At the time of writing, Bitcoin is trading at around $69,400, down 2% over the past 24 hours.<\/p>\n

\"Bitcoin<\/p>\n

The price of the asset appears to have been moving sideways recently | Source: BTCUSD on TradingView<\/a><\/pre>\n
Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

An analyst has revealed a simple strategy for buying and selling Bitcoin using the historical pattern followed by two BTC on-chain indicators. These Bitcoin On-Chain Indicators Have Followed A Specific Pattern Historically In a post on X, CryptoQuant author Axel Adler Jr. discussed a simple strategy for timing buying and selling moves for Bitcoin. The strategy is based on the trend witnessed historically in two BTC on-chain metrics: the Net Unrealized Loss (NUL) and Net Unrealized Profit (NUP). As their names suggest, these indicators keep track of the total amount of unrealized loss and unrealized profit that the investors are currently carrying. Related Reading: Coinbase Sees Largest USDC Inflow Ever, What This Could Mean For Bitcoin These metrics work by going through the transaction history of each coin in circulation to see what price it was last transacted at. Assuming that the last transfer of each coin was the last time it changed hands, the price at its instant would act as its current cost basis. If the previous price for any coin was less than the current spot price of the cryptocurrency, then that coin is currently carrying a profit. The NUP subtracts the two to calculate the exact unrealized gain for the coin. Similarly, the NUL does the same for coins that have their cost basis above the latest value of the asset. These indicators then sum up this value for the entire supply and divide the sum by the current market cap. Now, first, here is a chart shared by the analyst for the NUL that reveals a pattern that the metric has been following throughout the history of Bitcoin: The value of the metric seems to have been heading down in recent days | Source: @AxelAdlerJr on X The Bitcoin NUL appears to have historically broken above the 0.5 level when the asset’s price has traded around bear market lows. According to Axel, the indicator in this territory would be the moment to buy more. Recently, the metric has been floating around the zero mark, meaning that there has been any unrealized loss being held by the investors. This makes sense, as the cryptocurrency has set\u00a0new all-time highs (ATHs). Naturally, 100% of the supply goes into profit when an ATH is set. Similar to the pattern in the NUL, the NUP has been above the 0.7 level during major tops in the past, suggesting that it may be a good opportunity to sell when the indicator is in this zone. Looks like the value of the indicator has been climbing up recently | Source: @AxelAdlerJr on X As is visible in the chart, the NUP has been marching up with the recent rally in Bitcoin. Still, so far, the indicator hasn’t broken above the seemingly important 0.7 level, implying that the market may not yet be in an overheated place where selling would be ideal, at least according to this strategy. The graphs of the two indicators, though, show that neither of them flagged the exact tops or bottoms in the asset. It’s especially prominent in the data of the NUP, where the metric signaled “sell” during tops that were merely halfway through the bull run. Related Reading: Bitcoin Bull Flag Could Predict 10% Surge To $77,000, Analyst Explains That said, buying during the points flagged by the NUL and then selling at the overheated NUP values would have historically been profitable. In that sense, this would indeed be a “simple” strategy for the asset. It remains to be seen, though, whether these patterns will continue to hold in the current Bitcoin cycle as well. BTC Price At the time of writing, Bitcoin is trading at around $69,400, down 2% over the past 24 hours. The price of the asset appears to have been moving sideways recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":600402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,11434,5493,86685,7159,87375,4692,1119,1144],"class_list":["post-600384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-analyst","tag-bitcoin-buying","tag-bitcoin-loss","tag-bitcoin-profit","tag-bitcoin-selling","tag-bitcoin-strategy","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\nWhat's A Simple Strategy For Buying & Selling Bitcoin? 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/ktsl888.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"What’s A Simple Strategy For Buying & Selling Bitcoin? 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