Bitcoin’s price has surged past $108,000, edging closer to its all-time high and signaling a strong market rebound. Since the beginning of May, Bitcoin’s value has climbed steadily, gaining investor attention with a recent significant upward trend. 📈
The digital asset started May at around $94,146 before hitting nearly $111,970 by May 22. Following a short correction of 3.9%, the price surged again, rising more than 1.5% the following day.
A leading analyst and entrepreneur, Lark Davis, suggests that the current rally indicates significant potential for further growth.
He cites Net Realised Profit and Loss (NPL), which measures the profits made by Bitcoin owners who have sold their coins, to support this notion. He points out that NPL has not yet reached levels typically seen before market peaks.
This implies many investors are still holding onto their profits and haven’t started selling in large numbers, leading to continued upward movement in the short term.
**The Net Unrealised Profit and Loss (NUPL) indicator also provides further support. It tracks the overall unrealized profits or losses across all Bitcoin holders. On May 5, NUPL had a share of 52.78%, but it rose to 58.7% after Bitcoin peaked. While these numbers reflect high levels of profit, they are not as high as seen before market reversals.
Although the price has continued to rise, there hasn’t been a noticeable sell-off yet. However, the market remains susceptible to changes in regulations and shifts in the global economy, which could influence its trajectory. Nevertheless, technical indicators suggest Bitcoin’s upward trend is likely to continue for now.