Bitcoin analysts say this BTC metric is in 'belief zone' for the first time in 15 months

Bitcoin might be in the early phase of a major new bull cycle, a key on-chain metric suggests on Oct. 27.

In the month that followed, Bitcoin rose from around $7,500 to $13,868 by over 80%.What is NUPL and why does it signify the start of a Bitcoin bull run?

The NUPL metric essentially gauges how many Bitcoin holders are in profit or at a loss.

If the metric rises, it means more investors are profitable since they purchased BTC. The researchers at Glassnode calculate NUPL by evaluating the price of Bitcoin when it enters a new address.

"Bitcoin investor sentiment: Net Unrealized Profit/Loss has been in the 'Belief' zone for the past week. Currently, over 50% of the BTC market cap consists of unrealized profits - a level not seen since August 2019.".

Throughout 2017, Bitcoin stayed in the belief zone for a prolonged period, compared to the 2019 rally.

After a year following the halving, BTC started to rally.

If a similar pattern ensures, BTC could continue to rally throughout 2020 until the second half of 2021.What analysts say about the near-term price trend of BTC. In the short term, analysts and traders expect the price of Bitcoin to pull back in a healthy consolidation phase.

Researchers at Santiment said that on-chain and social metrics show concerning signs, possibly because BTC is becoming overheated.

Unlike the 2017 bull run, the current BTC rally has been more sustainable.