On-chain expert Willy Woo asserts that now may be the optimal moment for Bitcoin (BTC) enthusiasts to gear up for its next upward move. According to Woo, one classic indicator suggests that BTC post-halving re-accumulation may form a promising setup.
Woo, active on the social media platform X, examines the significance of the Puell Multiple, a renowned metric for identifying Bitcoin price peaks and troughs.
The Puell Multiple essentially calculates the ratio between the daily coin issuance in dollar terms and the 365-day moving average of daily coin issuance. It serves as an oscillator derived from miner profitability and income stress.
In his analysis, Woo shares a chart that refines the Puell Multiple, aiming to pinpoint precise shifts from bullish to bearish conditions.
Woo notes:
“Dr. Puell’s classic investment advice captures it aptly.
‘The most advantageous time to invest in Bitcoin is at its bottom; the second best is during the post-halving re-accumulation period.’
He expressed it through numbers rather than words.
I’ve clarified his model for improved comprehension.”
Current Insights on Bitcoin’s Momentum
As of now, the Puell Multiple remains below one, signaling that Bitcoin might not have the momentum required for a prolonged rally. However, it does suggest that BTC could be preparing for a bullish shift.
In addition to the Puell Multiple, Woo mentions that BTC inventory on crypto exchanges alludes to a “neutral bearish” price action but implies the possibility of a liquidation-triggered reversal.
“SHORT TERM: Expect a continuation of the current bullish swing, likely to persist for another week.”
“MEDIUM TERM: We observe significant spot Bitcoin accumulation. Although the exchange inventory for derivatives remains flat, this could quickly change with a short squeeze. The chart pattern is developing into a bull flag.”
“Current demand and supply is neutral-bearish, but we may move into a bullish structure with some liquidations. I remain cautiously optimistic.”
Bitcoin’s Current Trading Scenario
At the time of writing, Bitcoin is trading at $62,840, experiencing a slight drop for the day. This indicates that while the cryptocurrency may not be in a full bullish swing yet, the groundwork for a potential rally is being laid.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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