Bitcoin Could See Bearish Movement To $40,000

As Bitcoin continues to demonstrate bearish momentum, Grizzly, a technical and on-chain analyst, navigating Bitcoin's recent price action has issued a cautionary prediction.

Bitcoin price might experience a bearish movement to around $40,000, according to a technical and on-chain analyst known as Grizzly. This prediction is based on the Net Unrealized Profit/Loss (NUPL) metric, which helps determine the relative unrealized profit or loss experienced by Bitcoin holders.

Grizzly observed that the NUPL metric is currently entering a range that typically marks the beginning of a price drop for Bitcoin. The metric is currently positioned close to a critical level of 0.4, which usually indicates a probable downward trajectory.

Historically, the 0.4 level has been a major support and resistance level, and according to data, a break below this mark often signals the start of a huge bearish trend.

Should the index continue its downward trend, the bears are likely to seize complete control of the market. As a result, the analyst anticipates a strong decline for BTC to about $40,000 in the short term.

While the analyst expects a price drop due to the NUPL metric, he has pointed out that the magnitude of the present downswing is not yet strong enough to signal the end of the upward trend conclusively.

Bitcoin price experienced a slight rebound on Monday, with the crypto asset displaying a healthy movement after witnessing a slight recovery at the $56,632 level.

The digital asset might have encountered a price surge to around $58,531, but over the past week, the flagship coin is still showing a decrease of more than 3%.

Even though the general market sentiment is bearish, there is still room for the asset to attract further gains, as its daily trading volume has surged by over 6%, suggesting optimism among investors.