A popular Bitcoin indicator that traders use to gauge miner selling activity is approaching a level that signals a promising buying opportunity for Bitcoin, according to a crypto analyst.
Significance of the Puell Multiple Index
The Puell Multiple index is fluctuating between two critical levels. If historical patterns hold, a bearish scenario where the index drops below 0.6 could once again signal a favorable buying opportunity for investors, CryptoQuant contributor Grizzly explained.
Current Market Situation
Traders typically use the Puell Multiple to estimate the health of miner revenues. A high Puell Multiple, for example, might suggest low sell pressure whereas a low Puell Multiple may indicate high sell pressure. At the time of publication, the Puell multiple is reading a score of 0.69. To provide some context, when Bitcoin hit its all-time high of $73,679, the Puell Multiple was at 1.88. Bitcoin is currently trading at $58,416, down 8.98% over the past seven days.
Forecasts and Expectations
Pseudonymous crypto analyst Moustache said that the Puell Multiple is signaling one of the best opportunities to buy in over two years. However, how long Bitcoin remains in this uncertain range is a debate among traders. Analysts believe Bitcoin could “breakout” of its reaccumulation range as early as “late September,” but it is more likely that Bitcoin will “consolidate” through September before an “October breakout.”
The Puell Multiple index continues to be a key metric for assessing favorable moments to buy Bitcoin, making it an important tool for traders and investors.
Comments