The latest insights on the BTC buying zone as Bitcoin’s Puell Multiple approaches key levels. A sharp decline in Bitcoin price and a small downward movement in Bitcoin’s Puell Multiple index can be a potential buying zone for the asset.
According to a crypto analyst, traders use this indicator to analyze miners’ selling activities and are approaching a potential buying zone level. On August 31 a CryptoQuant contributor Frizzly explained the scenario in a note that the Puell matrix is moving between two crucial levels. If the index drops below the 0.6 level, it would be a buying zone for investors.
He also explained that the figure between 0.6 and 0.8 in a Puell Multiple Index is a decision zone for the asset. He noted that back in 2014 when this indicator dropped below the 0.6 mark, it signaled an opportunity for Bitcoin Dollar-Cost Averaging (DCA) strategies.
Miners’ earning is commonly evaluated by traders with the help of Puell Multiple. If the Puell Multiple is high then it can be interpreted that there is low distribution pressure or buying pressure while a low Puell Multiple indicates high distribution pressure or selling pressure.
At the moment the Puell Multiple is at 0. 69, as per the data obtained from Bitbo. In the same context, when Bitcoin was at its peak, the price was at $73,679 on March 13, a while ago, the Puell Multiple was just 1. 88.
A well-known crypto analyst Mostache also posted a status on X, telling his audience that the Puell Multiple index is strongly signaling a buying zone for Bitcoin.
Besides Mostache’s status, another analyst Rekt Capital believes that the asset has the potential of a breakout which can be seen at the end of September. He further stated that the asset will consolidate through September before an October breakout.
