Bitcoin (BTC) price has recently reached a level close to its historical price peak, and signs of a shift in market sentiment are becoming visible. However, the DMI indicator shows a slight decrease in the bullish trend and the intensity of buying.
Similarly, the on-chain NUPL indicator remains in a positive range; however, it shows signs of increased caution among holders compared to periods of peak optimism. Alongside Bitcoin’s technical chart, these indicators likely suggest a period of consolidation or minor correction before a potential upward move to record a new all-time high.
Recent Sentiment Changes in Bitcoin’s DMI
The DMI chart for Bitcoin shows that the ADX indicator is now at 29.26, which has decreased from over 40 in the past 40 days. ADX, or the Average Directional Index, measures the strength of a trend without indicating its direction. An ADX above 25 indicates a strong trend, while below 20 suggests a weak or no trend. The recent decrease in ADX from above 40 shows a weakening in Bitcoin’s recent bullish trend.
This indicator uses two lines, D+ and D-, to show the direction of the trend. Currently, D+ is at 20.6, and D- is at 24.5, indicating that sellers are temporarily stronger than buyers.
A few days ago, Bitcoin was in a stronger bullish trend, with D+ above 40 and D- around 10, indicating more buying pressure than selling. Although Bitcoin’s price is still in an uptrend, the balance between buying and selling forces has shifted slightly, with D- now slightly higher than D+.
The Distance of NUPL Indicator from Peak Optimism
Bitcoin is currently at a level of 0.529, which is slightly lower than the 0.546 level it was at a few days ago. This decrease indicates a slight decline in unrealized profits among holders, which could be due to profit-taking or a pause in overall market optimism. However, Bitcoin’s NUPL is still positive, meaning most holders are still in profit but are becoming more cautious.
NUPL, or Net Unrealized Profit/Loss, measures the difference between unrealized profits and losses among holders and reflects overall market sentiment.
Although Bitcoin’s NUPL has decreased, it is still in the belief-denial phase and is far from the level of extreme optimism (euphoria-greed), which historically marks periods of peak optimism.
Bitcoin Price Prediction (BTC): Stronger Correction Before New Highs?
Bitcoin’s price chart shows that its short-term Exponential Moving Averages (EMA) are positioned above the long-term EMAs, indicating a bullish trend. This alignment suggests a stronger movement compared to the long-term trend and is generally a sign of investor interest in further buying and positive sentiment, potentially setting the stage for more profits.
However, the decreasing gap between the EMAs shows that the bullish trend has weakened in recent days. If the bullish trend regains momentum, Bitcoin could move towards a new ceiling above $73,618. Conversely, in a bearish scenario, it may first retrace to the support level at $65,503; if bulls fail to defend this level, a drop to $62,043, or an 11.4% correction, could follow.
