According to some market indicators, now would be the perfect time to accumulate bitcoins (BTC).
Bitcoin worthless
The Puell multiplier is a measure obtained by dividing the amount of bitcoins mined in any one day converted into dollars, by the average daily emissions over 365 days. It helps assess the extent to which miners put selling pressure on the market. Therefore, when its value is less than 0.5, we can conclude that the assets issued in the last few hours are worthless compared to the annual average. At the time of writing, the index is 0.37. This means that at the moment, for miners, their activity is not very profitable. Which is a good sign to engage in buying cryptocurrency with a long-term perspective.
A sense of deja vu
Historically, every significant drop in BTC price has been accompanied by a drop in Puell’s 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. Later, the indicator changed to this same configuration in mid-June, in green belt After that, the bearish momentum faded, 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 step.
Source: Coindesk
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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.
