Bitcoin Price Signs Emerge on Daily Chart

Bitcoin's daily Puell Multiple made a notable move, aiming to surpass its 365-day moving average. This occurrence has historically foreshadowed a significant surge in the value of BTC.

Bitcoin Price Signs Emerge On Daily Chart_65d5d13a37fd1.webp

CryptoQuant data indicates that Bitcoin’s daily Puell Multiple is on the verge of surpassing its 365-day moving average, hinting at a potential uptrend. The Puell Multiple assesses the ratio of daily mined BTC to the 365-day average price, serving as a gauge for miner profitability.

A high Puell Multiple (above 4) suggests miners are enjoying profits beyond their usual expenses, possibly prompting them to sell some holdings and applying downward pressure on the price. Conversely, a low Puell Multiple (below 0.5) indicates miners are grappling with slim profits and are more likely to retain their coins to avoid losses.

In a recent report, CryptoQuant analyst DataScope shared a chart illustrating that historical instances of the daily Puell Multiple crossing above the 365-day moving average often preceded periods of BTC price appreciation. According to the analyst, this relationship signifies market trends, with such crossovers typically indicating an upward price trend.

Despite expectations of a rally post-ETF approval, Bitcoin reached a peak of $48,625 on January 11 and has since trended downward. Currently trading at $40,918, the leading cryptocurrency has experienced a 16% decline over the last ten days, as per CoinMarketCap data.

Despite the imminent crossover of BTC’s daily Puell Multiple above the 365-day moving average, the prospect of a rally is clouded by the recent low trade volume, signaling challenges in the short term.

Bitcoin Price Signs Emerge on Daily Chart

A seven-day moving average analysis of the coin’s daily trading volume reveals a significant 35% decline since January 14. Santiment’s data indicates that this reduced trading activity may be attributed to the persistently negative weighted sentiment surrounding the coin post-ETF launch. At the current moment, BTC’s Weighted Sentiment stands at -0.494.

Related: JPMorgan Raises Concerns Over Impending Bitcoin Sell-off

Examining the daily price chart, it becomes evident that Bitcoin has been in a bear cycle since January 12, marked by the MACD line crossing below the trend line, yielding negative values. The MACD line’s intersection with the trend line and subsequent descent below the zero line indicates that the short-term moving average has surpassed the long-term moving average, emphasizing the dominance of downward momentum over any potential uptrend.

Traders typically interpret this scenario as a sell signal, adding to the downward pressure on the asset’s price. Consequently, any anticipated price uptrend may face delays until sentiment improves, and bullish forces make a concerted effort to regain control of the market.

5.0/5

(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Bitcoin Dip 64500

News | Bitcoin | Editor Choice

Bitcoin Dips to $64,500, Yet Scarcity Remains High

Despite Bitcoin dipping slightly to $64,500 currently, most experts believe that prices will soon enter a bullish cycle.

Bitcoin Ath 2 Weeks

News | Bitcoin | Editor Choice

Bitcoin Nearing $70,000, Potential ATH in Coming Weeks

Bitcoin has been trading within a narrow range post-Halving, with many analysts suggesting the price could reach ATH in the next 1-2 weeks.

Azcnews Blackrock Etf

News | Bitcoin | Editor Choice

Bitcoin Hits $67,000 as BlackRock Grows for 70 Consecutive Days

BlackRock's Bitcoin spot ETF has registered 70 consecutive days of net inflows, propelling this instrument into the top 10 exchange-traded funds with the longest daily inflow streaks.

Bitcoin Is Profitable

News | Bitcoin | Editor Choice

A Great Buying Opportunity as 88% of Bitcoin Is Profitable

With Bitcoin surpassing the $65,000 mark, investors predict that the market bottom might have formed. The MVRV ratio is signaling a buying opportunity with a potential profit increase of 67%.

Successful Bitcoin Halving

Altcoin | Bitcoin | Editor Choice

Crypto Weekly (15/04 – 21/04): Successful Bitcoin Halving with Minimal Price Fluctuations

The crypto market last week saw particular attention due to the once-every-four-years event, Bitcoin Halving, along with the approval of Bitcoin and Ethereum ETFs in Hong Kong.