Analysis: On-Chain Metric Points to Further Bitcoin Declines

An on-chain analysis suggests Bitcoin (BTC) may face further losses in the current bear market.

Cointelegraph reported on July 7 that CryptoQuant contributor Thechesonchain wrote in a report that, compared with past bear markets, Bitcoin remains vulnerable to additional declines.

The report focused on Net Unrealized Profit/Loss, or NUPL. The on-chain metric gauges investors’ profit and loss positions by comparing Bitcoin’s current price with the price at which coins now in circulation last moved.

The contributor wrote that the indicator has yet to reach levels seen at the lows of previous bear markets. That suggests Bitcoin could undergo a further correction to about $58,000.

Still, the report added that declines in this cycle have gradually become smaller than in the past, meaning Bitcoin could form a bottom without falling to levels seen in earlier downturns.