Despite the recent downturn in the cryptocurrency market, there are positive signs for Bitcoin’s (BTC) future. One key indicator is the Puell Multiple, which suggests a bullish continuation for Bitcoin despite the recent dip.
Crypto Con, a well-known cryptocurrency analyst, has closely monitored the Puell Multiple and identified two key factors that point to a positive outlook.
Bitcoin’s Bullish Potential
According to Crypto Con’s analysis, the trend for Bitcoin remains intact, indicating that the market is still bullish on the cryptocurrency. Additionally, Bitcoin has not yet reached the mid-top line that every mid-top has reached without diminishing, as seen in the chart below, suggesting that there is still room for growth.
The Puell Multiple is a cryptocurrency market indicator that measures the ratio between Bitcoin’s daily issuance value and its 365-day moving average (MA)
The Puell Multiple is calculated by dividing the daily issuance value of Bitcoin (in USD) by its 365-day moving average. A high reading on the Puell Multiple suggests that BTC is overvalued and may be due for a correction. In contrast, a low reading suggests that Bitcoin is undervalued and may be a good buying opportunity.
The Puell Multiple is considered a long-term indicator, providing insights into the macro trends of the Bitcoin market. It has been used to predict major market movements, including the bull run in 2011 and the subsequent bear market.
These factors have been evident for Crypto Con since December 2022, when BTC broke the downtrend macro bearish outlook and reached $21,000. At the time, Crypto Con made his first bullish calls on the Puell Multiple when BTC traded at $16,500.
Is BTC Facing A Bear Market?
Doctor Crypto, a prominent analyst in the cryptocurrency space, has provided insights into what could be next for BTC. In a recent report, Doctor Crypto discussed the significance of key “price manipulations” that took place, which resulted in Bitcoin breaking above the 50-day Exponential Moving Average (EMA) and subsequently nuking afterward.
According to Doctor Crypto, losing the 200-week MA indicator can suggest that Bitcoin is entering a bear market.
Furthermore, the recent Securities and Exchange Commission (SEC) uncertainty in the market played a role in breaking down this important indicator, suggesting a clear manipulation by market makers. However, the report notes that market makers may be awaiting the outcome of the Federal Open Market Committee (FOMC) decision this week before deciding on the next move.
The report suggests that a worse-than-expected FOMC decision could lead to a massive drop toward the $24,000 region and potentially even lower. The fear of recession combined with SEC fear, uncertainty, and doubt (FUD) could lead to BTC’s “total collapse”, hunting down the liquidity pool at $24,000 and potentially even lower.
At the time of writing, the primary cryptocurrency in the market, Bitcoin, is trading at $25,800. It has been maintaining a sideways price action, leaving investors uncertain about which direction the market will move in
Featured image from iStock, chart from TradingView.com