Bitcoin (BTC) may have already bottomed out or be “very close” to it, analysts looking at new data this week believe.
In a Twitter thread on June 22, well-known indicator creator David Puell revealed what he says “looks interesting” about current Bitcoin buying and selling.
“It is very likely” that the bottom has been reached
With many sources calling for the BTC/USD pair to drop to $14,000 or below, bullish views on the current price action are few and far between.
For Puell, however, the Dynamics between long-term (LTH) and short-term (STH) holders hint that the situation is not necessarily as bearish as many fear.
Highlighting the cost base of each groupPuell showed that those who have been in the market longer paid less in aggregate for their BTC than recent investors.
With Bitcoin at multi-year lows, the pain falls more on STH than LTH. Therefore, the sale by capitulation of the former could have already manifested itself.
“In my opinion, it is very likely that we have had or are very close to a bottom”replied popular analyst Root.
correction:
LTH realized price: $22.2k.
STH realized price: $31.7k.https://t.co/1YEGkriVAJ— David Puell (@dpuellARK) June 22, 2022
Correction:
Realized price of LTH: USD 22,200.
Realized price of the STH: USD 31,700.
However, as Cointelegraph reported, even LTHs — defined as wallet entities that hold coins for 155 days or more — have continued to distribute to the market in recent weeks.
Mayer Multiple approaches the historic floor
Those looking for a profitable opportunity to “buy the dip” in Bitcoin, however, may be in luck, according to another popular on-chain metric, the Mayer Multiple.
As of June 22, the indicator, which shows the distance below the 200-day moving average (DMA) of the current spot price, is hinting that the return on investment rarely improves.
At 0.5, the Multiple is 50% below the 200-day DMA, and has only been below it for 2% of Bitcoin’s life.
“The macroeconomic conditions are different this time, but it is good to take them into account,” commented crypto entrepreneur Kyle Chasse on the numbers.
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