CryptoQuant Analyst: On-chain indicators show Bitcoin is approaching "favorable" buying levels

2024-09-01 14:12:11

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ChainCatcher message, CryptoQuant analyst Grizzly stated that historical data indicates the Bitcoin Puell Multiple index in the range between 0.6 and 0.8 can be described as the "Decision Zone."

Analysis of the trends over the past decade shows that when the index falls below the 0.6 threshold, it typically represents an ideal opportunity for dollar-cost averaging (DCA) strategies. Conversely, historically, breaking above the 0.8 level is associated with bullish market behavior, often pushing Bitcoin prices to new historical highs.

Currently, the Puell Multiple index is fluctuating between these two critical levels. If historical patterns hold, a bearish scenario where the index drops below 0.6 may once again provide favorable buying opportunities for investors.

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