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Bitcoin (BTC) accelerating?

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According to some market indicators, now would be the perfect time to accumulate bitcoins (BTC).

Undervalued Bitcoin

The Puell multiple is a measure obtained by dividing the amount of bitcoins mined in a day translated into dollars, by the average of daily emissions over 365 days. It helps to assess the extent to which miners exert selling pressure on the market. Thus, when its value is less than 0.5, we can deduce that the assets issued during the last few hours are undervalued compared to the annual average. At the time of writing, its index is 0.37. This means that currently, for miners, their activity is not very profitable. Which is a good signal to engage in buying cryptocurrency with a long-term perspective.

A sense of deja vu

Historically, every significant drop in the price of BTC has been accompanied by a drop in the Puell multiple below the 0.5 mark. This pattern was observed between October and November 2011, in January 2015, between November and December 2018, and in May 2020. More recently, the indicator has switched to this same configuration in mid-June, in the green zone. Thereafter, the bearish momentum subsided, allowing consolidation around $20,000 for weeks.

Another technical indicator also confirms the relevance of making acquisitions at this time. The MVRV-Z score is the difference between market value and realized value. When it is positive, it generally corresponds to a peak in the price of bitcoin (BTC). On the other hand, when it is negative, which has been the case since mid-June, it signals a downward phase.

Source: Coindesk

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Junie MAFFOCK avatar

Junie MAFFOCK

I came to blockchain out of curiosity and stayed with it out of passion. I was amazed by the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.

Source: www.cointribune.com

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