Despite the recent decline in the cryptocurrency market, there are positive signs for the future of Bitcoin (BTC). One leading indicator is the PuEL multiple, which suggests continued bullish momentum for bitcoin despite the recent decline.
Well-known cryptocurrency analyst Crypto Con has been closely monitoring the Poole Multiple and Identified Two key factors that point to a positive outlook.
bitcoin bullish potential
According to an analysis by Crypto Con, the trend is up for bitcoin, indicating that the market remains bullish on the cryptocurrency. Additionally, bitcoin has not yet reached the mid-top line, as seen in the chart below, suggesting there is still room for growth.
The Pool Multiple is a cryptocurrency market indicator that measures the ratio between the daily issuance price of bitcoin and its 365-day moving average (MA).
The Pool Multiple is calculated by dividing the daily issuance price of bitcoin (in USD) by its 365-day moving average. A higher reading on the pull multiple suggests that BTC is overvalued and could be due for a correction. Conversely, a lower reading suggests that bitcoin is undervalued and could be a good buying opportunity.
The PuEL Multiple is considered a long-term indicator that provides insight into the macro trends of the bitcoin market. It has been used to predict major market movements including the bull run in 2011 and the subsequent bear market.
These factors have been evident since December 2022 at Crypto Con, when bitcoin broke the downtrend macro bearish outlook and reached $21,000. At the time, when bitcoin was trading at $16,500, Crypto Con made its first bullish call on the Pool multiple.
Is BTC Facing A Bear Market?
Doctor Crypto, a leading analyst in the cryptocurrency space, has provided insight What could happen next for BTC? In a recent report, Doctor Crypto discussed the significance of the major “price manipulation” that resulted in Bitcoin breaking above the 50-day exponential moving average (EMA) and subsequent halving.
According to Doctor Crypto, the loss of the 200-week MA indicator signals that bitcoin is entering a bear market.
Furthermore, the recent Securities and Exchange Commission (SEC) uncertainty in the market played a role in this key indicator breaking, suggesting clear manipulation by market makers. However, the report added that market makers are likely to wait for the outcome of the Federal Open Market Committee (FOMC) decision this week before deciding on the next move.
The report suggests that a worse-than-expected FOMC decision could lead to a sharp decline to the $24,000 area and potentially even lower. Fears of a recession combined with SEC fears, uncertainty and doubt (FUD) could lead to a “total collapse” of BTC, hunting down liquidity pools at $24,000 and potentially even lower.
At the time of writing, the primary cryptocurrency in the market, Bitcoin, is trading at $25,800. This perpetuates lopsided price action, leaving investors unsure of which direction the market will move
Featured image from iStock, Chart from TradingView.com