Bull Signal in Bitcoin: According to CryptoQuant, BTC to Rally on This Date!
According to data analysis firm CryptoQuant, a key indicator suggests that the ongoing Bitcoin correction may potentially be ending. Similar situations were observed in 2016 and 2020. The question remains: when will the upward trend begin?
CryptoQuant’s latest analyses indicate that Bitcoin is approaching a significant milestone in its bull cycle. The Puell Multiple, which measures miners’ revenue on a daily basis and compares it to yearly averages, serves as a critical indicator. When miners’ profitability declines, it often signals the market reaching bottom levels. Current data shows that the decrease in Puell Multiple is painting a picture reminiscent of past bull cycles.
The Indicator Drops Again
Puell Multiple is calculated by dividing Bitcoin’s daily issuance value (in USD) by its 365-day moving average. Historically, it helps identify periods of overbought or oversold conditions in Bitcoin markets.
When Will the Bull Run Start?
CryptoQuant analyst Crypto Dan has emphasized how this indicator is used to determine the bottom of bear markets. Historical data shows that periods of decline in the Puell Multiple have often preceded strong upward movements in Bitcoin’s price. In 2016 and 2020, this indicator significantly dropped before Bitcoin’s price rapidly surged. Crypto Dan suggests that the current decline could lead to a similar outcome. Based on the data, the analyst predicts that the Bitcoin bull run could begin from the third quarter of 2024.
Investors should closely monitor the current decrease in Puell Multiple based on CryptoQuant’s data. This indicator, known for accurately signaling the beginning of past bull cycles, could play a significant role in the current scenario. Investors should consider market conditions and other macroeconomic factors when formulating strategies based on such indicators.
Decrease in Non-Zero Bitcoin Wallets
Crypto analytics platform Santiment revealed a recent decrease in the number of non-zero (non-zero value) Bitcoin wallets, currently at 54.09 million as of their latest data. Since June 5th, there has been a net decrease of 566,000 wallets. Santiment suggests that this decrease could be a positive sign for patient investors, as it often stems from liquidations by impatient holders known as “weak hands.”
Additionally, Santiment reported that both the 30-day and 365-day Market Value to Realized Value (MVRV) ratios for Bitcoin are currently in the negative territory. This indicates a buying opportunity as traders are buying at a loss. Notably, the last time both MVRV ratios were negative, investors who bought Bitcoin achieved a return of 132%.
Note: This is not investment advice
