This NRPL chart illustrates the scale of realized profits and losses by market participants selling Bitcoin.
Looking at the chart, the current level of profit realization in the red box may trigger a short-term correction due to the recent surge, but it is not significant enough to mark the end of the upward cycle. Compared to the NRPL spikes at past cycle peaks, this round of profit-taking is relatively limited. In particular, when compared to the movements at the highs in March and November 2024, the current level of profit realization is notably lower.
At this level of profit-taking, a shift to a downward cycle is unlikely. The upward cycle for Bitcoin is still highly likely to continue.
Written by Crypto Dan
