Onchain Analysis: What Does NUPL Data Say?
Strategic Actions Based on NUPL
Since we are currently in a bull market, here's how we can strategize: Identifying Buying Opportunities
As long as NUPL remains between 0.5 and 0.75, price increases are likely. Pullbacks in this range can be seen as buying opportunities. A rising NUPL and price increase indicate ongoing buying pressure. When NUPL approaches 0.75, it signals a heated market where caution should be exercised to avoid deep corrections.
Using EMA 121 as a Support and Resistance Indicator: EMA 121 often acts as a critical support and resistance level. Observing NUPL's relationship with EMA 121 can help identify potential manipulations and key momentum shifts. Deviations around EMA 121 can provide signals to adjust positions; either to take profits or to buy on momentum shifts.
The bull market continues and the extreme stage has not yet been reached. By carefully monitoring NUPL values and its interaction with EMA 121, we can better navigate the market's fluctuations. This approach allows us to make informed decisions, optimize buying opportunities and prepare for market corrections.
