On-chain analyst Willy Woo says a popular indicator is bullish on Bitcoin $62,877He wrote that it signals that they need to prepare for the next bullish move.
Puell Multiple and Bullish Signals
Sharing on social media platform X, Woo drew attention to the Puell Multiple indicator, which is frequently used to predict Bitcoin peaks. Puell Multiple is an indicator that reflects the profitability and income stress of miners, expressing the ratio of the daily cryptocurrency issuance value to its 365-day moving average.
Woo adjusted the chart to show the Puell Multiple more clearly, locating the approximate points at which the indicator switches from bullish to bearish.
“Dr. Puell famously said: ‘The best time to buy Bitcoin is at the bottom, the second best time is during the post-halving reaccumulation period.’ He didn’t say it in words, he expressed it in numbers. I made his model clearer.”
Noting that the Puell Multiple is still below one, Woo said that this shows that Bitcoin does not yet have enough momentum for a sustainable rally but can prepare for an upward trend.
BTC Stocks on Exchanges and Market Expectations
Woo stated that the price action of BTC inventory on crypto exchanges is currently “bearish neutral,” but a reversal due to liquidation is possible.
Willy Woo: “Short term: continuation of bullish movement, likely to last another week. Medium term: we see a lot of spot BTC accumulating, exchange inventory accounting for derivatives is stable, but this could change quickly if there is a short squeeze. The chart pattern is forming a bull pennant. Current supply and demand are neutral bearish but there are signs of a transition to a bullish structure with some liquidations. I am cautiously optimistic.”
At the time of writing, Bitcoin is trading at $62,840, down slightly on the day.
The Puell Multiple has historically been considered a key indicator of Bitcoin’s price action. Current data could indicate a period of reaccumulation that could draw the attention of bulls. Investors can shape their strategies by considering factors such as mining profitability and BTC flow on exchanges.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
