According to Cointelegraph, a crypto analyst said that a popular Bitcoin indicator used by traders to measure miner selling activity is approaching a signal that Bitcoin may usher in a buying opportunity. CryptoQuant contributor Grizzly explained in an analysis report on August 31 that the Puell Multiple indicator fluctuates between two key levels. If the historical pattern holds, when the index falls below 0.6, it may once again provide investors with a favorable buying opportunity. Grizzly explained that the range between 0.6 and 0.8 of the Puell Multiple indicator is called the "decision zone."
Historical data shows that since 2014, when the index falls below 0.6, it usually indicates an ideal buying opportunity for Bitcoin. Traders often use the Puell Multiple to estimate the health of miner revenue. A high Puell Multiple may indicate low selling pressure, while a low Puell Multiple may indicate high selling pressure. According to Bitbo data, the current Puell Multiple is 0.69. For comparison, when Bitcoin reached its all-time high of $73,679 on March 13, the Puell Multiple was 1.88. According to CoinMarketCap data, Bitcoin is currently trading at $58,416, down 8.98% in the past seven days.
Anonymous crypto analyst Moustache told his 133,100 X followers that the Puell Multiple is signaling the best buy opportunity in two years. However, traders are debating how long Bitcoin will stay in this uncertain range. Anonymous crypto trader Rekt Capital believes that Bitcoin could "break out" of its reaccumulation range in late September, but is more likely to "consolidate" until October.
