It represents investor sentiment and shows what Bitcoin holders would gain or lose if they sold now.
It is calculated by dividing the unrealized gain/loss by the market capitalization.
Unrealized gains/losses are the subtraction of the price at which it was purchased from the value it now has in the market.

NUPL = (Market Cap - Realized Cap) / Market Cap

Historically, the periods in which this metric has been below 0 have been good times to buy BTC and whe

When the NUPL metric is analyzed, market analysts and BTC holders can gain insight into Bitcoin investor sentiment.
When the NUPL is high, it indicates that a significant portion of the market is in a profit state, which could result in profit-taking or selling pressure.
Conversely, when the NUPL is low, it suggests that most market participants are in a losing state, which could lead to more buying activity or bullish sentiment.

NUPL is often used in conjunction with other metrics and indicators to understand market dynamics and make informed trading decisions. Helps identify potential market highs or lows by tracking changes in investor sentiment and their impact on price movements.