Bitcoin Puell Multiple Flashes BTC Bull Run to Start Ahead in Q3

Bitcoin BTC Price rally Spot Ethereum ETF

The Bitcoin (BTC) price has suffered huge selling pressure dropping all the way to $53,500 on Monday amid the massive sell-off by the German government as well as the Mt. Gox’s creditors’ repayment. After yesterday’s crash, the Bitcoin price has recovered to $57,500 as of press time with some of the on-chain metrics showing strength for Bitcoin going ahead.

Bitcoin Peull Multiple Flashes Bull Run Ahead

Onc-hain data provider CryptoQuant leverages the Bitcoin Peull Multiple to identify the bottom of the bear market as well as signal the end of the correction period in the bull market.

Historically, the Puell Multiple has fallen significantly during bull cycles, such as in 2016 and 2020, followed by strong rises in Bitcoin’s price. Red-circled areas on the chart highlight instances where miners’ profitability dropped rapidly, leading to a plummet in this indicator.

Courtesy: CryptoQuant

This time in 2024, similar patterns have been emerging suggesting that the end of the correction in this bull market could be near. As a result, CryptoQuant expects the start of the bull run in this third quarter.

The last month of June saw massive Bitcoin miner capitulation as the profitability for the miners dropped by a staggering 7.8%, at levels not seen since the April halving event. The BTC miners’ daily revenue has plummeted all the way to $26 million, from a staggering $78 million before the halving event.

Also Read: Bitcoin Miner Bitfarms Appoints New CEO Amid Riot Takeover Bid

BTC Holding Wallets Drop Amid Market Volatility

On-chain data provider Santiment reported that there’s a drop in the non-empty Bitcoin wallets, currently standing at 54.09 million. Since June 15, the net decrease in these wallets is 566,000.

Santiment reported that the reduction is a positive sign for patient investors. this drop in wallets is basically due to the liquidation by impatient holders aka weak hands. As per Santiment, this often reflects market bottoms caused by fear, uncertainty, and doubt (FUD). similar patterns were observed earlier in January, suggesting potential buying opportunities.

Courtesy: Santiment

Santiment further reports that the 30-day and 365-day Bitcoin MVRV indicators are both in negative territory.

This situation indicates a buying opportunity, as it shows that current purchases are being made when other traders are experiencing losses.

Santiment highlights that the last time both MVRV ratios were negative, investors who bought Bitcoin then would have seen a 132% return.

Courtesy: Santiment

Also Read: German Govt Bags 3673 Bitcoin After Massive Dump

The post Bitcoin Puell Multiple Flashes BTC Bull Run to Start Ahead in Q3 appeared first on CoinGape.


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