Net Unrealized #Profit/ #Loss Ratio (#NUPL) shows that the recent rally has launched the spot price of #Bitcoin above the average acquisition price of the wider market. This puts the market back into a regime of #unrealized profit, where the average #hodler is back in the green.

At present, the market is comfortably placed in the Plateau of Patience, with a significant percentage of the supply held by #Long-Term Holders (#LTHs) who currently have an unrealized #loss on their position and their holdings are kept outside of exchanges. Additionally, the current supply structure #bears resemblances to those seen in early 2016 and early 2019.

This Chart Shows the #Profit or #Loss Bias (dominance) of #STH volumes flowing into exchanges. We can see a steady decline in profit dominance as the 2023 rally progressed, as more #STHs acquired coins with an increasingly elevated cost basis.

This week we saw the largest loss dominance reading since the #March sell-off to $19,800. This suggests that the STH cohort are both largely underwater on their holdings, and increasingly price sensitive.