According to a crypto analyst, a popular Bitcoin indicator used by investors to measure miner sales activity is approaching a level that signals a promising buying opportunity for Bitcoin. The Puell Multiple index is trading between these two critical levels. If historical patterns continue, a bearish scenario where the index falls below 0.6 could once again signal a positive buying opportunity for investors.
Notable Bitcoin Data
CryptoQuant contributor Grizzly explained in an analyst note dated August 31 that the range between 0.6 and 0.8 in the Puell Multiple Index is known as the decision zone. The analyst noted that historical data dating back to 2014 shows that when the index falls below the 0.6 threshold, it typically signals an ideal opportunity for Bitcoin Dollar Cost Averaging (DCA) strategies.
Investors typically use the Puell Multiple to estimate the health of miner revenues. For example, a high Puell Multiple indicates low selling pressure, while a low Puell Multiple may indicate high selling pressure. At the time of writing, the Puell Multiple stood at 0.69 points according to Bitbo data.
To provide some context, when Bitcoin reached its all-time high of $73,679 on March 13, the Puell Multiple data was recorded at 1.88. According to CoinMarketCap data, Bitcoin is currently trading at $58,416, down 8.98% over the past seven days.
Details on the Subject
Popular crypto analyst Moustache told his 133,100 X followers that the Puell Multiple data has indicated one of the best buying opportunities in over two years:
“I’m saying this; this is your second-best chance to accumulate before the next cycle starts since 2022.”
However, how long Bitcoin will remain in this uncertain range is debated among investors. Another popular crypto investor, Rekt Capital, believes Bitcoin could break its accumulation range as early as the end of September. However, Rekt believes Bitcoin is more likely to consolidate until September before a breakout in October.
