bitcoin, the cryptocurrency market leader and the largest digital asset, is currently trading at $58,877 after a rather negligent price movement over the past day. According to bitcoin/” target=”_blank”>CoinMarketCap dataThe leading cryptocurrency had more lows than highs in August, resulting in a 8.46% drop during the month. Earlier in September, a CryptoQuant analyst with the username Grizzly has provided valuable insights into the current state of bitcoin’s price and possible price action in the coming weeks.
Puell's multiple index puts bitcoin in decision zone
In bitcoin-in-a-Neutral-Zone-Insights-from-the-Puell-Multiple-Index” target=”_blank”>a post x On Saturday, Grizzly stated that there is a lot of uncertainty surrounding bitcoin’s movement based on data from the token’s Puell Multiple index. To put it into context, the Puell Multiple index is a bitcoin trading indicator used to measure miner profitability and the price trend of the broader market. It is evaluated by dividing bitcoin’s issuance value by its 365-day moving average.
According to Grizzly, when this indicator is between 0.6 and 0.8, as is currently the case, it indicates that the btc market is in a “decision zone,” with equal potential to start an uptrend or a downtrend.
Generally, a drop below 0.6 indicates that bitcoin miners are earning less than the historical average, primarily due to a decline in the btc price. Grizzly shares that such a scenario presents a good opportunity for dollar-cost averaging (DCA), where investors buy bitcoin incrementally to reduce their average purchase cost over time.
On the other hand, a break above the 0.8 level indicates increasing miner profitability, in line with rising bitcoin prices. Based on historical price data, Grizzly claims that this type of development typically represents the beginning of a bull market.
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Number of bitcoin whales hits 17-month high
In other news, amidst bitcoin's turbulent performance over the past month that has left many retail traders in the red, the number of whales in the market has maintained a steady growth. According to x.com/santimentfeed/status/1829671149527318910″ target=”_blank”>Data from the chain analysis company SantimentThere was a net increase of 283 wallets holding more than 100 btc in August, taking this metric to a 17-month high of 16,120.
An increase in the number of whales in the market and the accumulation of assets indicates significant confidence in the token’s long-term profitability. Therefore, this rising btc level could be widely interpreted as a bullish signal for the coming months. However, price gains could be expected in Q4 as historical data indicates that September is likely to feature another bearish phase.
As stated earlier, bitcoin is still trading around $58,877 with a 7.56% drop over the past week. Meanwhile, the asset’s trading volume is down significantly by 61.93% and is valued at $12.70 billion.
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