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The relief rally that the broader crypto market experienced on Monday was short-lived. Market sentiment took a dive after BTC plunged below the $30k psychological support in the early hours on Tuesday (Asian trading hours). As of the time of writing, the largest crypto by market cap is consolidating losses above the $29.5k level after shedding 5% of its market value over the last 24 hours. With MACD gaining pace in the bearish zone, BTC will likely trend further down to test support levels in the $27.2k–$28.5k region should its rebound to above $30k fail.
On-chain metrics reveal that the crypto market is still plagued by fear and uncertainty. The Net Unrealized Profit/Loss (NUPL) metric, one that maps out the unrealized PnL of the network as a percentage of the market cap, can be used to gauge the market's pain threshold and potential bottom. Since early May, the NUPL has been fluctuating in the 18.6% to 25% range, a level comparable to the pre-capitulation phases in previous bear cycles. Despite the recent flow of troubling news and capricious market sentiment, capital continues to pour into the space, with $126 million flowing into BTC investment products last week alone.