On-chain analyst Willy Woo says one classic indicator is suggesting that now is an opportune time for bulls to position themselves for Bitcoin’s (BTC) next leg up.
On the social media platform X, Woo looks at the Puell Multiple, which has often been used to call tops for Bitcoin.
The Puell Multiple is a ratio between the daily coin issuance in dollar terms and the 365-day moving average of daily coin issuance, aiming to provide an oscillator derived from miner profitability and income stress.
Woo shares a chart that smooths out the Puell Multiple to roughly pinpoint when the indicator passes from bullish to bearish.
Says Woo,
“Famous quote from Dr Puell.
‘The best time to buy Bitcoin is at the bottom, the second best time to buy is at the post halving re-accumulation’
He didn’t say it in words, he said it in numbers.
I’ve cleaned his model up to say it a bit clearer.”
At time of writing, the Puell Multiple is still under one, suggesting that BTC doesn’t yet have the momentum it needs for a sustained rally but it does hint that Bitcoin is gearing up for a bullish regime.
Woo also says BTC inventory on crypto exchanges suggests that price action is currently “neutral bearish” but that a liquidation-triggered reversal was possible.
“SHORT TERM: continuation of bullish swing, likely one week left in play
MEDIUM TERM: we’re seeing LOTS of spot BTC being scooped up, exchange inventory accounting for derivatives remains flat, but this could change quickly if we get a short squeeze. The chart pattern is forming a bull flag.
Current demand and supply is neutral bearish, but signs of moving into a bullish structure if we get some liquidations. Cautiously optimistic.”
At time of writing, Bitcoin is trading for $62,840, a fractional decrease on the day.
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