Bitcoin (BTC) Analyst Willy Woo Says Classic Indicator Is Flashing a Buy Signal
- Linda HamiltonOriginal
- 2024-09-22 21:15:15420browse
On-chain analyst Willy Woo says one classic indicator is suggesting that now is an opportune time for bulls to position themselves for Bitcoin's (BTC) next leg up.
Bitcoin (BTC) on-chain metrics are signaling a potential buying opportunity for the apex crypto, according to a new analysis by Willy Woo.
The prominent on-chain analyst highlights the Puell Multiple, a technical indicator used to gauge the sustainability of Bitcoin’s bull and bear markets. The indicator is calculated by dividing the daily coin issuance in dollar terms by the 365-day moving average of daily coin issuance.
According to Woo, the indicator has historically marked the tops for Bitcoin, with the best buying opportunities presenting themselves at the lowest points on the Puell Multiple, which typically follow the Bitcoin halvings. He shares a chart that aims to pinpoint the optimal buying periods.
“Famous quote from Dr Puell.
‘The best time to buy Bitcoin is at the bottom, the second best time to buy is at the post halving re-accumulation’
He didn’t say it in words, he said it in numbers.
I’ve cleaned his model up to say it a bit clearer.”
The Puell Multiple is currently below one, suggesting that BTC may still be lacking the momentum for a sustained rally. However, the indicator hints that Bitcoin is preparing for a bullish period.
Woo also analyzes BTC exchange inventories, showing that they’re currently leaning “neutral bearish” in terms of price action. However, he notes that a liquidation-triggered reversal is possible.
“SHORT TERM: continuation of bullish swing, likely one week left in play
MEDIUM TERM: we’re seeing LOTS of spot BTC being scooped up, exchange inventory accounting for derivatives remains flat, but this could change quickly if we get a short squeeze. The chart pattern is forming a bull flag.
Current demand and supply is neutral bearish, but signs of moving into a bullish structure if we get some liquidations. Cautiously optimistic.”
Bitcoin is trading at $62,840 at the time of writing, showing a nearly flat price movement over the past 24 hours.
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