According to @glassnode, on-chain activity has softened, with active addresses down 2% to 692k and now below the low band (source: @glassnode). Fees fell 17%, pointing to reduced blockspace demand and lower user activity intensity (source: @glassnode). Realized Cap Change slowed to 3.2%, indicating cooler net capital inflows on-chain (source: @glassnode). The share of supply in profit declined from 95% to 91%, while NUPL dropped to 5%, signaling fading profitability and softer risk appetite (source: @glassnode). Overall, these on-chain indicators reflect weaker demand and waning profitability, a backdrop traders monitor for momentum shifts and liquidity conditions (source: @glassnode).

According to @glassnode, the Net Unrealized Profit to Loss (NUPL) ratio has risen significantly, indicating the market may be entering a state of euphoria with elevated unrealized profit margins. This on-chain metric suggests a heightened risk of imminent profit-taking, as investors could be increasingly motivated to sell and capitalize on their substantial gains.

According to @glassnode, while Bitcoin futures positioning and ETF inflows suggested strong market conviction, key on-chain data indicated the market was approaching saturation just before the recent correction. Analysis from @glassnode showed that 98.9% of the BTC supply was in profit, realized gains were accelerating, and the Net Unrealized Profit/Loss (NUPL) metric was reaching euphoria levels. These metrics collectively served as strong indicators that a market pullback was imminent.

According to Crypto Rover, Bitcoin has entered the euphoria/greed zone on the NUPL (Net Unrealized Profit/Loss) indicator. This signal historically precedes significant price increases, as seen in 2017 when it appeared at $1.3K before Bitcoin peaked at $20K, and in 2021, when it flashed at $20K before the price rose to $64K. The indicator has been showing this signal for two months, suggesting traders should closely monitor potential market movements (source: Crypto Rover).