Bitcoin On-Chain Indicator Suggests $58.5K Price Near Favorable Level

September 02, 2024 03:53 PM AEST | By Team Kalkine Media

Google News:

Bitcoin On-Chain Indicator Suggests $58.5K Price Near Favorable Level — Image source: shutterstock

Recent News

Canada to hit NATO defense target early - The Globe and Mail

What are the three big things in markets now? RBC weighs in

Tesla downgraded as ’uncertainty abounds’

Warner Bros. Discovery to split into two media companies

CryptoQuant contributor Grizzly suggests that a slight decrease in the Bitcoin Puell Multiple index may present a favorable opportunity for Bitcoin. The Puell Multiple, a key indicator used to evaluate miner selling activity, is nearing a critical range that historically signals potential buying opportunities.

Grizzly’s analysis, notes that the Puell Multiple is currently fluctuating between 0.6 and 0.8, a range identified as the "Decision Zone." Historical data dating back to 2014 indicates that when the index falls below the 0.6 level, it often signals an opportune moment for dollar-cost averaging strategies.

At present, the Puell Multiple stands at 0.69, according to data from Bitbo. For context, during {Bitcoin} (BTC) peak at $73,679 on March 13, the Puell Multiple was recorded at 1.88. This current reading suggests a lower sell pressure among miners, which could be indicative of an advantageous time for strategic accumulation.

Crypto analyst Moustache has highlighted the Puell Multiple’s current level as one of the best buying opportunities seen in over two years. Moustache communicated to their followers that this period could represent a significant chance to accumulate Bitcoin before potential upward momentum.

Despite this, the duration of Bitcoin’s stay within the current range is a subject of debate among traders. Analyst Rekt Capital has noted the possibility of a breakout from the current reaccumulation range as early as late September. However, Rekt Capital suggests that it is more probable Bitcoin will consolidate through September before experiencing a breakout in October.

In summary, while the Puell Multiple indicates a potentially favorable time for accumulation, market participants remain divided on the timing of a significant price movement. The ongoing analysis and historical trends provide a framework for understanding current market conditions and potential future developments.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.