Bitcoin on-chain data shows 5 reasons why the BTC bottom could be in

After a whirlwind November for Bitcoin (

All-time high Bitcoin hodling despite a historic price drawdown

One metric used to analyze Bitcoin hodler behavior is the Long-term Holder Net Unrealized Profit and Loss (NUPL) tracker.

Throughout Bitcoin’s history, the NUPL metric has only shown such a large downdraw on four occasions.

The previous occasions that witnessed such large downdraws represented value Bitcoin purchases for investors. Edwards suggests that if investors view BTC price as undervalued, their choice to accumulate could further solidify Bitcoin’s floor.

Another trend is forming as the long-term hodlers metric hits peak numbers. Currently, 66% of Bitcoin’s supply is in the hands of long-term hodlers, meaning they have held their Bitcoin for over one year.

According to Edwards, this behavior is aligned with shifting macro markets.

We have an all-time-high in long-term hodling. Those keeping Bitcoin at least 1 year now represent more of the network than ever before, 66%. Prior peaks of long-term holding all aligned with bear market toughs. pic.twitter.com/4IXnUg5f3S

— Charles Edwards (@caprioleio) December 6, 2022

While the markets are still heavily correlated to equities and vulnerable to macro market shifts, multiple data points hint that Bitcoin could be in the final stages of a bottoming process.