bitcoin is currently trading around $63,500 as we begin the journey into the last week of September. btc/bitcoin-price-strength-64k/” rel=”nofollow noopener” target=”_blank”>with optimism for rising pricesRenowned cryptocurrency analyst Willy Woo has offered an optimistic outlook on bitcoin's next steps, drawing attention to a key technical indicator, the Puell Multiple. In his recent analysis, Woo suggested that bitcoin is Positioned for a significant rallyforecasting bullish momentum as we approach the final quarter of 2024.
The role of the Puell multiple
Willy Woo's perspective revolves around the Puell Multiple, a metric that helps identify the peaks and valleys of the bitcoin market cycle by comparing the daily issuance of btc to its price. That is, the Puell Multiple compares the difference between btc miners' income in the short term to the long-term earnings trend. Historically, this indicator has been used to signal the best btc buying opportunities.
Woo took to social media platform x x.com/woonomic/status/1837348070583062912″ rel=”nofollow” target=”_blank”>Post An adjusted version of the traditional Puell Multiple chart to highlight specific points where bitcoin transitioned from bull to bear cycles in the past. In particular, the chart highlighted periods of bitcoin bottoms after an extended downtrend and periods of accumulation after each halving. These two periods have often been correlated with a shift from negative to positive thresholds on the Puell Multiple.
At the time of writing, the Puell Multiple currently sits at -1. However, recent market dynamics have seen this metric trending higher since early 2024 and has steadily moved closer to zero. In his analysis, Woo stated: “The best time to buy bitcoin is at the bottom.
The second best time to buy is in the post-halving reaccumulation.” This essentially means that bitcoin is now approaching the perfect point for accumulation after the most recent halving in April 2024. He noted that btc’s reaccumulation phase, often marked by gradual price increases, is now unfolding. Consequently, the best time to buy bitcoin is now, especially for long-term holders looking to move up.
Bullish flag and market accumulation
In a x.com/woonomic/status/1836296837168533747″ rel=”nofollow” target=”_blank”>Previous bitcoin AnalysisWoo highlighted a short squeeze of btc on cryptocurrency exchanges. He mentioned, “We are now seeing a LOT of spot btc being acquired on exchanges.” At the same time, the btc price chart is starting to exhibit a recognizable “bull flag” pattern, a signal traders often associate with an upcoming price breakout.
There's no denying that the general consensus around bitcoin is a significant price rally, especially as we head into the fourth quarter of the year, which is bitcoin-price-is-headed/” rel=”nofollow noopener” target=”_blank”>Historically known for its bullish activityThis makes Willy Woo's perspective even more compelling.
At the time of writing, bitcoin is trading at $63,647 and is up 1.30% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
