Connect with us
Active Currencies 14907
Market Cap $2,486,321,210,899.20
Bitcoin Share 51.16%
24h Market Cap Change $-0.86

Bitcoin: Buying opportunity opens up – Does this indicate a BTC rally?

2min Read

The steady decline in BTC’s Puell Multiple hints at a possible price rebound.

Bitcoin: Buying opportunity opens up - Does this indicate a BTC rally?

Share this article

  • Bitcoin’s Puell Multiple has been on a decline in the last month.
  • This provided a buying opportunity for market participants.

The recent decline in Bitcoin’s [BTC] Puell Multiple hinted at the possibility of a new bull cycle, pseudonymous CryptoQuant analyst Crypto Dan found in a new report.

BTC’s Puell Multiple tracks the profit miners on the network make by comparing BTC’s daily issuance value to its 365-day moving average.

When BTC’s Puell Multiple surges, it indicates that the coin’s daily issuance is significantly above the yearly average. This often corresponds with market peaks and signals that BTC is overvalued and due for a decline. 

Conversely, when this metric declines, it suggests that the daily issuance value is below the yearly average, indicating potential BTC undervaluation.

It is often followed by a BTC price spike as market participants “buy the dip.”

As of this writing, BTC’s Puell Multiple was 0.80. It initiated its current cycle of decline on the 6th of June and has since fallen by 54%. 

Bitcoin Puell Multiple

Source: CryptoQuant

Dan assessed BTC’s historical performance and found that when its Puell Multiple plunged during the bull cycle in 2016 and 2020, it was “followed by the beginning of Bitcoin’s strong rise.”

According to Dan, this can happen in the current market cycle. 

“In 2024 Currently, similar movements have been detected. Although the exact end of the adjustment period is difficult to be certain, it can be expected that it is not far away. It is likely that we will see the start of a bull rally within the 3rd quarter of 2024,” Dan noted. 

What are BTC miners up to?

The past 24 hours have been marked by a surge in BTC’s miner reserves. This metric measures the amount of coins held in affiliated miners’ wallets. Its value indicates the reserve that miners have yet to sell. 

At press time, 1.82 million BTC, valued at $104 billion at press time market prices, were held across miner wallets.


Read Bitcoin’s [BTC] Price Prediction 2024-2025


In the last 24 hours, the BTC miner reserve has spiked by 1%. When this increases, it means that miners are holding onto their coins instead of selling them on the market. 

Bitcoin Miner Reserve - All Miners

Source: CryptoQuant

It may be due to the anticipation that the coin’s price will rise in the short/mid-term. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.