On-chain data shows the Bitcoin Net Unrealized Profit and Loss (NUPL) is forming a golden cross, a sign that could be bullish for the price.

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An analyst in a CryptoQuant post pointed out that this crossover pattern has been repeated multiple times since 2013. The “Net Unrealized Profit and Loss” (NUPL) is an indicator that tells us about the amount of unrealized profit or loss that Bitcoin investors are currently holding.

By “unrealized,” what’s meant here is that holders have yet to sell/transfer their coins to harvest the profit or loss they have accumulated. If the investors were to sell these coins, the same amount of profit/loss they were carrying would become “realized.”

The NUPL calculates this unrealized profit/loss by subtracting the realized cap (a capitalization model for BTC that accounts for the price at which each coin on the chain was bought) from the market cap. The metric then simplifies this value by dividing it by the market cap.

When the metric has a positive value, the average investor holds an unrealized profit, while negative values suggest unrealized losses dominate the market. Naturally, the indicator having a value equal to zero implies the holders are just breaking even currently.

READ THE FULL STORY: Bitcoin Bullish Signal: NUPL Is Forming A Golden Cross