Bitcoin, the crypto market leader and largest digital asset, currently trades at $58,877 following a slightly negligent price movement within the last day. In accordance with data from CoinMarketCap, the premier cryptocurrency saw more lows than highs in August, leading to an 8.46% decline over the month. As September begins, a CryptoQuant analyst with the username Grizzly has provided priceless insight into Bitcoin’s current price status and potential price motion in the approaching weeks.
Puell Multiple Index Puts Bitcoin In Decision Zone
In an X post on Saturday, Grizzly stated that there may be much uncertainty around Bitcoin’s movement based on data from the token’s Puell Multiple index. For context, the Puell Multiple Index is a Bitcoin trading indicator used to measure the profitability of miners and the broader market’s price trend. It’s assessed by dividing the issuance value of Bitcoin by its 365-day moving average.
In accordance with Grizzly, when this indicator ranks between 0.6 and 0.8, because it currently is, it indicates the BTC market is a “decision zone”, with an equal potential to initiate an uptrend or a downtrend.
Generally, a dip below 0.6 indicates that Bitcoin miners are earning lower than the historical average, mostly as a result of a decline in BTC price. Grizzly shares that such a scenario presents opportunity for Dollar-Cost Averaging (DCA), where investors buy Bitcoin incrementally to lower their average purchase cost over time.
Alternatively, a breakout above the 0.8 level indicates an increasing miner profitability, in tandem with rising Bitcoin prices. Based on historical price data, Grizzly states that such development normally represents the beginning of a bullish market.
Bitcoin Whales Count Reach 17-Month High
In other news, amidst Bitcoin’s turbulent performance within the last month which have left many retail traders with losses, the variety of market whales have maintained a gentle growth. In accordance with data from on-chain analytics firm Santiment, there was a net increase of 283 wallets holding 100+ BTC in August, bringing this metric to a 17-month high of 16,120.
A rise in market whales and asset accumulation indicates significant confidence within the token’s profitability in the long run. Thus, this rising level of BTC could possibly be widely interpreted as a bullish signal for the approaching months. Nevertheless, price gains could possibly be expected in Q4 as historical data indicates September may likely present one other bearish phase.
As earlier stated Bitcoin continues to trade at around $58,877 with a 7.56% decline within the last week. Meanwhile, the asset’s trading volume is significantly down 61.93% and valued at $12.70 billion.
