What’s A Simple Strategy For Buying & Selling Bitcoin? This Analyst Answers

An analyst has shared a straightforward strategy for buying and selling Bitcoin based on two on-chain indicators. The Net Unrealized Loss (NUL) and Net Unrealized Profit (NUP) indicators track the total amount of unrealized loss and profit carried by investors. By analyzing the transaction history of each coin, these indicators calculate the unrealized gain or loss based on the coin’s last transfer and its current market value. The strategy suggests buying when the NUL breaks above the 0.5 level, indicating a bear market low, and selling when the NUP exceeds the 0.7 level, suggesting a major top. However, it’s important to note that these indicators may not precisely identify the exact tops or bottoms of the market. Nonetheless, historically, following this strategy would have been profitable, although its effectiveness in the current Bitcoin cycle remains to be seen.