Bitcoin, the leading cryptocurrency and the largest digital asset, is currently trading at $58,877 after a somewhat negligible price action in the last day. According to Data from CoinMarketCapThe leading cryptocurrency saw more declines than increases in August, resulting in a decline of 8.46% over the month. As September begins, a CryptoQuant analyst with the username Grizzly has provided valuable insight into Bitcoin’s current price status and potential price action in the coming weeks.
Puell Multiple Indicator Puts Bitcoin in Decision Zone
in Share X Grizzly said on Saturday that there is a lot of uncertainty around Bitcoin’s movement based on data from the token’s Puell Multiple Index. For context, the Puell Multiple Index is a Bitcoin trading index used to measure miner profitability and the broader market price trend. It is calculated by dividing the value of Bitcoin issued by its 365-day moving average.
According to Grizzly, when this indicator is between 0.6 and 0.8, as it is currently, it indicates that the BTC market is in a “decision zone,” with equal potential to start an uptrend or a downtrend.
In general, a drop below 0.6 indicates that Bitcoin miners are earning less than the historical average, mostly due to the decline in the price of Bitcoin. Grizzly points out that such a scenario represents a good opportunity for dollar-cost averaging (DCA), where investors gradually buy Bitcoin to lower the average cost of purchase over time.
Instead, a break above the 0.8 level indicates increased profitability for miners, coinciding with a rise in Bitcoin prices. Based on historical price data, Grizzly notes that such a development typically marks the beginning of a bull market.
Bitcoin whale count hits 17-month high
In other news, amid Bitcoin’s turbulent performance over the past month that has caused losses for many retail traders, the number of whales in the market has maintained a steady growth. According to Data from on-chain analytics firm SantimentThere was a net increase of 283 wallets holding more than 100 BTC in August, bringing this metric to a 17-month high of 16,120.
The increase in market whales and asset accumulation indicates a strong confidence in the token’s long-term profitability. Therefore, this rising level of BTC can be widely interpreted as a bullish signal for the coming months. However, price gains can be expected in Q4 as historical data suggests that September will likely mark another bearish phase.
As mentioned earlier, Bitcoin is still trading at around $58,877, down 7.56% in the past week. Meanwhile, the asset’s trading volume has dropped significantly by 61.93% to $12.70 billion.
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