Charles Edwards, founder of Capriole Investment, wrote that Bitcoin’s net unrealized profit and loss (NUPL) is showing a loss of long-term holders, with the market entering a capitulation zone (red) that has only occurred every four years in the past.
Additionally, Charles Edwards introduced a new on-chain metric called the Bitcoin Yardstick, which likewise indicates a market bottom, close to 2019 levels. It is understood that the indicator uses “Bitcoin market capitalization / computing power, divided by the 2-year average”, and mainly shows the ratio of energy work done to protect the Bitcoin network to the price.