Bitcoin On-Chain Indicator Approaches Favorable Buying Level at $58.5K
Recent analysis indicates that a prominent Bitcoin on-chain indicator is nearing a price point that may present a compelling buying opportunity for investors. According to a report from CryptoQuant contributor Grizzly, the Puell Multiple index is currently oscillating between crucial thresholds. Historically, if the index falls below 0.6, it has often foreshadowed an advantageous moment for Bitcoin purchases.
Grizzly emphasized that the range between 0.6 and 0.8 is designated as the “Decision Zone” on the Puell Multiple Index. Historical data, tracing back to 2014, reveals that breaches below the 0.6 mark frequently correspond with prime buying opportunities for Bitcoin.
The Puell Multiple is a metric commonly utilized by traders to assess miner revenue health. A high reading on this index signifies low selling pressure from miners, whereas a low reading indicates heightened seller activity. Currently, the Puell Multiple stands at 0.69, as reported by Bitbo. For reference, during Bitcoin’s previous all-time high of $73,679 on March 13, the Puell Multiple registered at 1.88.
As of the latest data, Bitcoin is trading at approximately $58,416, reflecting a decline of 8.98% over the last week, as reported by CoinMarketCap. Pseudonymous analyst Moustache shared insights with their 133,100 followers on X, asserting that the current Puell Multiple suggests one of the most favorable buying opportunities in the last two years. Moustache confidently stated, “I assert that this represents your second best opportunity to re-accumulate prior to the onset of the next price surge after 2022.”
Yet, the duration for which Bitcoin will remain within this ambiguous price range is subject to debate among market participants. Analyst Rekt Capital posits that a potential breakout from the existing reaccumulation phase could occur as soon as late September. However, Rekt suggests that it is more plausible Bitcoin will endure a period of consolidation throughout September, with a subsequent breakout anticipated in October.
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