Bitcoin, the crypto market leader and largest digital asset, currently trades at $58,877 following a rather negligent price movement in the last day. According to data from CoinMarketCap, the premier 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 Puts Bitcoin In Decision Zone
In an X post on Saturday, Grizzly stated that there is much uncertainty around 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 broader market’s price trend. It is assessed by dividing the issuance value of Bitcoin by its 365-day moving average.
According to Grizzly, when this indicator ranks between 0.6 and 0.8, as it currently is, it indicates the BTC market is a “decision zone”, with an equal potential to initiate an uptrend or a downtrend.
Generally, a dip below 0.6 indicates that Bitcoin miners are earning less than the historical average, mostly due to a decline in BTC price. Grizzly shares that such a scenario presents a good opportunity for Dollar-Cost Averaging (DCA), where investors buy Bitcoin incrementally to lower their average purchase cost over time.
Alternatively, a breakout above the 0.8 level indicates an increasing miner profitability, in tandem with rising Bitcoin prices. Based on historical price data, Grizzly states that such development usually represents the start of a bullish market.
Bitcoin Whales Count Reach 17-Month High
In other news, amidst Bitcoin’s turbulent performance in the last month that have left many retail traders with losses, the number of market whales have maintained a steady growth. According to data from on-chain analytics firm Santiment, there has been a net increase of 283 wallets holding 100+ BTC in August, bringing this metric to a 17-month high of 16,120.
An increase in market whales and asset accumulation indicates significant confidence in the token’s profitability in the long term. Thus, this rising level of BTC could be widely interpreted as a bullish signal for the coming months. However, price gains could be expected in Q4 as historical data indicates September may likely present another bearish phase.
As earlier stated Bitcoin continues to trade at around $58,877 with a 7.56% decline in the last week. Meanwhile, the asset’s trading volume is significantly down 61.93% and valued at $12.70 billion.
