A valuable Bitcoin metric has dropped to levels that historically signaled buying opportunities.
The Bitcoin Puell Multiple is a metric traders use to gauge a potential market top or bottom based on miner profitability. It works by weighing Bitcoin’s daily insurance in USD against the asset’s 365-day moving average.
According to a CryptoQuant report, the metric has dropped to the 0.4 range for the first time since the end of 2022.
The technical chart shows that the Puell Multiple, represented by the blue line, notably dropped to a lower bound (0.4), signaling a market bottom and strong buying opportunities.
The new development could signal to long-term investors in the accumulation phase that a market bottom is underway. According to CryptoQuant’s analyst, it could also mean that Bitcoin is still undervalued.
The analyst stated the importance of combining the Puell Multiple with other notable metrics, such as the on-chain data. Additionally, the analyst advised that considering macroeconomic conditions could be beneficial.
Bitcoin poised to reclaim $60,000
Another notably bullish development suggests that Bitcoin investors are playing the long game. Data from CryptoQuant revealed that Bitcoin exchange depositing addresses are at their lowest levels since 2016.
The current number of Bitcoin exchange depositing addresses has dropped to 132,100. The metric highlights the number of addresses sending inflow transactions to cryptocurrency exchanges.
Cryptoquant deduces that a reduction in value represents a decline in the number of investors selling coins on cryptocurrency spot exchanges, suggesting a drop in selling pressure.
At report time, Bitcoin is trading at $62,816. The apex cryptocurrency has lost 0.63% of its market value over the past 24 hours. Despite failing to sustain momentum above the $60,000 price level, Bitcoin has retained gains, going higher than 6% within seven days. The overall cryptocurrency market cap is notably down by 2.35%.
Crypto analyst Ali Charts took to X to highlight a rather optimistic outlook, stating that the asset can retest previous resistance levels and attempt an upclimb above $60,000.
“On the hourly chart, Bitcoin is moving within a parallel channel. If the lower boundary holds, BTC could rebound to the mid or upper levels at $60,200 or $62,000. However, a break below the $58,100 support may lead to a drop towards $55,000.” Ali Charts wrote.