Bitcoin On-Chain Indicator Suggests $58.5K as a Favorable Buy Level

According to Cointelegraph: A recent analysis by CryptoQuant contributor Grizzly has highlighted a key on-chain indicator suggesting that Bitcoin’s current price of $58,416 may present a favorable buying opportunity. The Puell Multiple index, a popular metric used by traders to assess miner selling activity, is nearing a level historically associated with ideal buying conditions.On April 20, around the Bitcoin halving, the Puell Multiple index score was 1.76. Source: BitboAccording to Grizzly, the Puell Multiple is currently fluctuating between the “Decision Zone” of 0.6 and 0.8. Historical patterns indicate that when the index drops below the 0.6 threshold, it often signals a prime opportunity for dollar-cost averaging (DCA) strategies in Bitcoin. As of the latest data, the Puell Multiple stands at 0.69, a level that suggests the possibility of a bullish reversal.The Puell Multiple serves as a gauge of miner revenue health, with a high index typically indicating low sell pressure and a low index signaling higher sell pressure. At Bitcoin’s all-time high of $73,679 in March, the Puell Multiple was at 1.88, further emphasizing the current lower index as a potential buy signal.Bitcoin is down 9.77% over the past 30 days. Source: CoinMarketCapCrypto analyst Moustache, with a significant following on X (formerly Twitter), echoed this sentiment, calling the current Puell Multiple one of the best buying opportunities in over two years. Moustache urged investors to consider this moment as a critical time for re-accumulation before the next bullish wave.However, there is some debate among traders about the duration of Bitcoin’s stay in its current range. Pseudonymous trader Rekt Capital suggested that while a breakout could occur as early as late September, it is more likely that Bitcoin will consolidate through September, with a potential breakout in October.As Bitcoin’s price hovers around $58,500, down nearly 9% over the past week, market participants are closely watching the Puell Multiple and other indicators for signs of the next significant price movement.