On-chain analyst Willy Woo said that a classic indicator suggests now is an opportune time for bulls to position themselves for Bitcoin’s (BTC) next rally.
Writing on social media platform X, Wu focused on the Puer Multiple, a popular method for predicting Bitcoin’s all-time highs.
The Puell Multiple is the ratio of daily coin issuance in dollar terms to the 365-day moving average of daily coin issuance, and is intended to provide an oscillator derived from miner profitability and revenue stress.
Woo shares a chart that smooths out the Puell Multiple to roughly pinpoint when the indicator transitions from bullish to bearish.
Wu says.
“This is a famous quote from Dr. Puel.
“The best time to buy Bitcoin is at the bottom, the second best time is when it replenishes after the halving.”
He didn't say it in words, he said it in numbers.
I took his model and streamlined it to make it a little easier to understand.”
At the time of writing, the Puell Multiple is still below 1, suggesting that BTC does not yet have the momentum necessary for a sustained rally, but it does suggest that Bitcoin is gearing up for a bullish regime.
Woo too say BTC inventories on cryptocurrency exchanges suggest that the price trend is currently “neutral bearish” but that a reversal triggered by liquidation is also possible.
“In the short term, the bull market will continue, probably for the rest of the week.”
Mid-term: We are seeing heavy buying of spot BTC. Derivatives exchange inventories remain flat, but things could change quickly if a short squeeze occurs. Chart patterns are forming a bullish flag.
“Current supply and demand is neutrally bearish, but there are signs of a shift to a bullish structure if liquidation occurs. We are cautiously optimistic.”
At the time of writing, Bitcoin was trading at $62,840, down slightly from the previous day.
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