when

April

Rekt

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.
“The Puell Multiple index is fluctuating between these 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 in an Aug. 31 analyst <a data-ct-non-breakable="null" href="https://cryptoquant.com/insights/quicktake/66d30d148e55b5397431b76a-Bitcoin-in-a-Neutral-Zone-Insights-from-the-Puell-Multiple-Index" rel="null" target="null" text="null">note</a>.&nbsp;
<figure>
 <img alt="Bitcoin onchain indicator signals $58.5K price near ‘favorable’ buy level" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191ac17-a536-7be3-b540-20cd50f2e942">
 <figcaption style="text-align: center;">
 On April 20, around the Bitcoin halving, the Puell Multiple index score was 1.76. Source: Bitbo
 </figcaption>
</figure>
Grizzly explained that the range between 0.6 and 0.8 on the Puell Multiple index is known as the “Decision Zone.” 
He noted that historical data dating back to 2014 showed that when the index drops below the 0.6 threshold, it has often signaled an ideal opportunity for Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null">BTC</a>) dollar-cost averaging (DCA) strategies.
<h3 id="traders-use-indicator-as-miner-activity-metric">Traders use indicator as miner activity metric</h3>
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.&nbsp;
At the time of publication, the Puell multiple is reading a score of 0.69, <a data-ct-non-breakable="null" href="https://charts.bitbo.io/puell-multiple/" rel="nofollow noopener" target="_blank" text="null">according</a> to Bitbo data. To provide some context, when Bitcoin <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat#:~:text=Data%20from%20Cointelegraph%20Markets%20Pro,dip%20before%20abruptly%20heading%20higher." rel="" target="_self" text="null">hit its all-time high of $73,679 on March 13</a>, the Puell Multiple was 1.88.
Bitcoin traded at $58,416 at the time of writing, down 8.98% over the past seven days, <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow noopener" target="_blank" text="null">according</a> to CoinMarketCap data.
<figure>
 <img alt="Bitcoin onchain indicator signals $58.5K price near ‘favorable’ buy level" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191ac25-c50f-7702-9ce5-0749170cb974">
 <figcaption style="text-align: center;">
 Bitcoin is down 9.77% over the past 30 days. Source: CoinMarketCap
 </figcaption>
</figure>
Pseudonymous crypto analyst Moustache told their 133,100 X followers that the Puell Multiple is signaling one of the best opportunities to buy in over two years.
“I call it here: This is your second best chance after 2022 to re-accumulate before the next wave starts,” Moustache <a data-ct-non-breakable="null" href="https://x.com/el_crypto_prof/status/1829449714237845554" rel="null" target="null" text="null">declared</a>.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-chart-price-pattern-bullish-crypto-traders-68k" rel="null" target="null" text="null">Bitcoin chart signals possible ‘extremely’ quick move to $68K — Traders</a>
However, the question of how long Bitcoin will remain in this uncertain range is debated among traders.
Pseudonymous crypto trader Rekt Capital <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1829916428772016452" rel="nofollow noopener" target="_blank" text="null">believes</a> there is a possibility that Bitcoin could “breakout” of its reaccumulation range as early as “late September.”
However, Rekt believes it is more likely Bitcoin will “consolidate” through September before an “October breakout.”
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/peter-mccormack-new-podcast-what-bitcoin-did-mccormack-show/" rel="null" target="null" text="null">‘Everything feels like it’s going to shit’: Peter McCormack reveals new podcast</a>

Bitcoin onchain indicator signals $58.5K price near ‘favorable’ buy level

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