As we enter the final week of September, Bitcoin’s trading value is hovering around $63,500, creating a sense of optimism for a bullish trend. Well-known crypto analyst Willy Woo has shared a positive perspective on Bitcoin’s future, focusing on a significant technical indicator known as the Puell Multiple. In his latest analysis, Woo indicated that Bitcoin is poised for a considerable rally, predicting bullish momentum as we transition into the last quarter of 2024.
The Importance of the Puell Multiple
Woo’s analysis centers on the Puell Multiple, a metric that aids in identifying the peaks and valleys of Bitcoin’s market cycles by comparing its daily issuance to its price. Specifically, it contrasts the short-term revenue of BTC miners with the trend of long-term revenue. Historically, this metric has been instrumental in locating optimal buying opportunities for BTC.
Woo took to the social media platform X to share a revised version of the conventional Puell Multiple graph, pinpointing key moments when Bitcoin shifted from bullish to bearish cycles in previous years. The graph notably illustrated instances of Bitcoin lows following prolonged downtrends and accumulation phases after each halving event. These two intervals have frequently coincided with transitions from negative to positive readings on the Puell Multiple.
At the time of this writing, the Puell Multiple stands at a negative 1. However, recent market trends have shown this metric rising since the beginning of 2024, steadily approaching the zero mark. In his comments, Woo remarked, “The best time to buy Bitcoin is at the bottom.
The second-best time to buy is during the post-halving re-accumulation.” This implies that Bitcoin is nearing an ideal accumulation point following the latest halving in April 2024. He noted that BTC’s re-accumulation phase, typically characterized by gradual price increases, is now beginning. As such, now is regarded as the optimal time to acquire Bitcoin, particularly for long-term investors eager to position themselves advantageously.
Recognizing a Bullish Flag and Market Accumulation
In a previous analysis on Bitcoin, Woo pointed out a decline in BTC available on cryptocurrency exchanges. He noted, “We’re now seeing LOTS of spot BTC being scooped up from exchanges.” Concurrently, the BTC price chart is showing a distinctive “bull flag” pattern, often viewed by traders as a precursor to a price breakout.
The prevailing sentiment regarding Bitcoin indicates an anticipation of a substantial price rise, particularly as we approach the fourth quarter of the year, a period that is historically associated with bullish trends. This further substantiates Willy Woo’s perspective.
At the moment, Bitcoin is trading at $63,647, reflecting a 1.30% increase over the past 24 hours.
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