Bitcoin, the crypto market leader and largest digital asset, is currently trading at $58,877, after a rather negligent price move over the past day. According to data from CoinMarketCapthe major cryptocurrency saw more lows than highs in August, resulting in an 8.46% decline over the month. As September begins, a CryptoQuant analyst with the username Grizzly has provided valuable insight into Bitcoin’s current price status and potential price action in the coming weeks.
Puell Multiple Index Places Bitcoin in Decision Zone
In an X post On Saturday, Grizzly stated that there is a lot of uncertainty surrounding 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 price movement of the broader market. It is assessed by dividing Bitcoin’s issuance value by its 365-day moving average.
According to Grizzly, the fact that this indicator is between 0.6 and 0.8, as is currently the case, indicates that the BTC market is a “decision zone”, with an equal potential for an upward or a downward trend to initiate.
In general, a dip below 0.6 indicates that Bitcoin miners are earning less than the historical average, mainly due to a decline in the BTC price. Grizzly shares that such a scenario presents a good opportunity for Dollar-Cost Averaging (DCA), where investors purchase Bitcoin incrementally to lower their average purchase costs over time.
Alternatively, a breakout above the 0.8 level indicates increasing miner profitability, coupled with rising Bitcoin prices. Based on historical price data, Grizzly states that such a development typically represents the start of a bullish market.
The number of Bitcoin whales reaches a 17-month high
In other news, amid Bitcoin’s turbulent performance over the past month, which has left many retail traders incurring losses, the number of market whales has continued to grow steadily. According to data from on-chain analytics company Santimentthere has been a net increase of 283 wallets holding over 100 BTC in August, bringing this statistic to a 17-month high of 16,120.
An increase in the number of market whales and asset accumulation indicates significant confidence in the long-term profitability of the token. Thus, this rising level of BTC could be broadly interpreted as a bullish signal for the coming months. However, price gains can be expected in the fourth quarter as historical data indicates that September is likely to usher in another bearish phase.
As previously mentioned, Bitcoin continues to trade around $58,877, down 7.56% over the past week. Meanwhile, the asset’s trading volume has fallen significantly (61.93%) and is valued at $12.70 billion.
