The Bitcoin Puell Multiple, a key tool for traders, has dropped to levels that have historically indicated buying opportunities. The indicator measures Bitcoin miner profitability by comparing daily Bitcoin returns in USD with a 365-day moving average.
According to a report from CryptoQuant, the index has dropped to around 0.4 since late 2022. The technical chart shows that the Puell Multiple has dropped to a low (0.4), signaling a market bottom and a strong buying opportunity.
This development could indicate that long-term investors are accumulating, while also indicating that Bitcoin remains undervalued.
Analysts recommend combining the Puell Multiple with other indicators and taking into account macroeconomic conditions.
Bitcoin Likely to Reclaim $60,000
Another positive sign shows that Bitcoin investors are pursuing a long-term strategy.
Data from CryptoQuant shows that the number of addresses depositing Bitcoin to exchanges is at its lowest level since 2016, now down to 132,100.
This shows that selling pressure is decreasing.
At press time, Bitcoin is trading at $62,816, having lost 0.63% of its value over the past 24 hours. Despite failing to hold the momentum above $60,000, Bitcoin still maintains a gain of more than 6% over the past seven days.
Total cryptocurrency market capitalization decreased by 2.35%.
Analyst Ali Charts shared on X that Bitcoin could retest previous resistance levels and rise above $60,000.
“On the hourly chart, Bitcoin is in a parallel channel. If the bottom holds, BTC could rally to $60,200 or $62,000. However, if the support level of $58,100 breaks, it could drop to $55,000,” Ali Charts wrote.
