It’s been a week now that Bitcoin is keeping above the $9,000 level.
It was early on last week that the digital asset took a fall to $8,500 but after moving back above $9,000 in the following day, we have been ranging between $9,200 and $9,900.
However, as per the Puell Multiple, it is time to accumulate bitcoin.
This Multiple has dropped back into the green zone as a result of the reduced miners’ revenue due to the third halving last week. Before May 11, the miner flow was 1900 BTC per day which has been reduced to just 800 BTC per day.
“Historically, this zone has marked excellent periods for investors to accumulate BTC for outsized returns,” noted Glassnode.
Created by David Puell of Adamant Capital, this indicator is calculated by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of daily issuance value.
This metric focuses on the supply side of Bitcoin’s economy — both miners and their revenue.
Because bitcoin miners are referred to as compulsory sellers due to their need to cover fixed costs of their mining hardware in an extremely volatile market, their revenue can “influence price over time.”
This metric provides a chart that highlights periods where the value of bitcoins mined and entering the ecosystem is either too great or too low relative to historical norms, which can be beneficial for an investor.
Those periods where the value of daily issued bitcoin has been extremely low, “produced outsized returns for Bitcoin investors who bought Bitcoin here.” And those periods with extremely high daily issuance value (in the red box) provide profit-taking for bitcoin investors who sold here.
Interestingly, bitcoin is now fast approaching its second golden cross of 2020.
This technical pattern is a bullish breakout formed with the crossover of short-term moving average above the long-term moving average. It indicates a potential for a major bull rally and is reinforced by high trading volumes.
Last year, when bitcoin printed a golden cross, the world’s leading digital currency recorded an upward move of more than 160%.
In February this year, bitcoin again printed a golden cross but the black swan event – coronavirus resulted in the massive sell-off in global markets including crypto. Now, it’s to be seen, if we would be lucky this time around.
Moreover, the 30-day average of bitcoin sentiment is currently at its highest since the 2017 bull market, as per The TIE.
The 30-day average tweet volumes on Bitcoin are also at 2020 highs.