The price of Bitcoin (BTC) has been showing changes in sentiment after recently reaching a level very close to its all-time high. The DMI highlights a weakening in the momentum of BTC growth, suggesting a decline in purchasing intensity.
Likewise, while the NUPL remains in a positive phase, it reveals a more cautious attitude among holders compared to the levels of euphoria seen in past cycles. Together with the BTC price chart, these indicators suggest a period of consolidation or a minor correction before a possible move to new highs.
BTC’s DMI shows a recent shift in sentiment
BTC’s DMI chart reveals that its ADX is now at 29.26, down from over 40 days ago. The ADX, or Average Directional Index, measures the strength of the trend without indicating its direction.
An ADX above 25 indicates a strong trend, while values below 20 suggest a weak or non-existent trend. With the ADX falling from above 40, the strength of BTC’s recent uptrend has faded.
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BTC DMI. Font: TradingView
The DMI uses two lines, D+ and D-, to indicate the direction of the trend. Currently, BTC’s D+ is at 20.6, while D- is at 24.5. This suggests that sellers are momentarily stronger than buyers.
However, just a few days ago, BTC was in a stronger uptrend, with D+ above 40 and D- around 10, showing that buying pressure far exceeded selling pressure. Although BTC price is technically in an upward trend, the balance between buying and selling forces has shifted slightly, with D- rising more than D+.
Bitcoin’s NUPL is far from euphoria level
Currently, BTC’s NUPL is at 0.529, slightly lower than the 0.546 level reached a few days ago. This decrease indicates a modest decline in unrealized profits among holders, reflecting some recent profit-taking or a lull in overall market optimism.
Despite the decrease, BTC’s NUPL remains positive, meaning that most holders are still in profit but are moving towards a more cautious sentiment.
BTC NUPL. Source: Glass node
NUPL, or Net Unrealized Profit/Loss, is a metric that calculates the difference between unrealized gains and losses among holders, indicating overall market sentiment.
Although BTC’s NUPL has declined, it is still in the belief-denial phase and is currently well below the euphoria-greed level where extreme optimism historically occurs.
BTC Price Prediction: A Stronger Correction Before a New All-Time High?
The BTC price chart shows its short-term EMA lines positioned above the long-term EMAs, indicating an uptrend. This alignment suggests stronger recent momentum than the long-term trend, often a sign of increased buying interest and positive sentiment, potentially setting up further gains.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
BTC EMA and Support and Resistance lines. Source: TradingView
However, the narrowing gap between the EMAs signals that the bullish momentum has slowed in recent days. If the upward trend regains strength, BTC could aim for new highs above USD 73,618. Conversely, BTC may first retrace to test the support at USD 65,503; if this level fails, a drop to USD 62,043 could follow, marking a correction of 11.4%.
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