Bitcoin is the flagship cryptocurrency that is considered a hallmark for the rest of the altcoin market. At present, the volatility of Bitcoin is at its peak. After traveling downwards from its ATH of $6,500 in April, Bitcoin is struggling to stay on the 50% lesser price mark of $35K.
However, now a highly prompt index is pointing towards an upcoming bear market crash down for BTC. Market analyst David Puell introduced Puell Multiple Index. This is calculated by dividing the daily supply value of BTC by the yearly moving day average. Puell Multiple has been used in the past many times for predicting the price movement of the flagship cryptocurrency accurately.
Bitcoin is Moving Out of the Buying Zone Range
The Puell Multiple is considered a classic and highly accurate on-chain indicator. The latest readings of the index reveal that there will be a major jump while there is no certainty about its impact on the price action. Philip Swift, who founded the lookintobitcoin.com services, shares the translation of the technical movements.
According to Swift, this simple yet effective metric is often employed for measuring the market extremes. Towards the end of June, it dipped toes into the green zone that is considered a buy section for the 5th time to date. As per Swift, the index is now moving in reversal upwards towards the red zone. This turnaround has been impacted by the readjustment difficulties during the last weeks.
Cointelegraph, one of the sought-after crypto news agencies, claims that miners have migrated and returned to operation after the recent crackdown in China. The return will start to restore the decrease in hash rates while there is no certainty about neutralizing the turbulence caused by this effect.
On the other hand, Rekt Capital opines that the green zone dips will result in setting off a BTC/USD pair bottom. The trip towards the green border happens if the Bitcoin fails to align with the price behavior. Michael van de Poppe, an avid crypto trader, explains that the upcoming Grayscale unlocking will also affect BTC/USD.