Following a bearish breakout and a sharp decline from $32K, Bitcoin’s downtrend has come to a halt. The price is rebounding towards $21K and above, thanks to the $17K–$20K area of the 2017 all-time highs which is acting as strong support.
Analysts say that after looking at new data this week, Bitcoin may have already experienced a price bottom or it can be “really close” to one. On June 22, renowned indicator developer David Puell shared information on current Bitcoin buying and selling that, in his opinion, “looks interesting” in a Twitter thread.
There aren’t many bullish opinions on the current market activity, with many sites expecting BTC/USD to fall to $14,000 or even lower. Puell believes that the relationship between long-term and short-term holders (LTHs and STHs) gives a hint that the situation may not be as negative as many people think.
Puell demonstrated that people who have been in the market for a longer time paid less overall for their BTC than more recent investors by highlighting the cost basis for each category.
When can you “buy the dip”?
However, the Mayer Multiple, another well-liked on-chain statistic, suggests that those searching for a successful “buy the drop” chance on Bitcoin may be in luck. The indicator, which measures the spot price’s distance from the 200-day moving average (DMA), is indicating that return on investment rarely improves as of June 22.
At 0.5, the Multiple is 2% below the 200 DMA and 50% below the 200 DMA for the course of Bitcoin’s existence. Crypto entrepreneur Kyle Chasse remarked on the numbers.
At the time of writing, BTC is trading at $20,545 and is up by 0.02 percent in the last 24 hours.