On the surface, June appears to have been a quiet month for BTC. It ended the month at $35,037, down 6% from the previous month’s close. In comparison to the first five months of this year, price action remained rather sluggish, and trading volume was low. Hence, the fear of the token entering a bear market continues to grow.
The only upside to this is it is a great opportunity to Hodl tokens at a steal price. While Buying the dip is a great strategy, knowing when exactly to do so is tricky. Not to worry, popular analyst Rekt Capital has already got you covered on this.
Analyst Rekt Capital on the basis of the Puell Multiple indicator has determined the price level one should start hodling. When a coin is undervalued, the Puell Multiple (P-Multiple) is a data science indicator that shows periods of outsized potential profits for investing in it.
It emphasizes the area that has prior great Bitcoin buying possibilities. The price motion of the coin is normally in consolidation while the indicator is in the undervalued area.
P-Multiple has entered the undervalued zone five times in Bitcoin’s history, including the current decline.
The blue bars on the chart represent the original bottom, which does not coincide to the coin’s price decline. It is the second bottom that determines the price of Bitcoin. When P-Multiple enters the green zones, the price drops to the market’s bottom and settles for a period. With the exception of 2020, and possibly this time as well.
The chart’s red box depicts the 2020 crash, whereas the yellow box depicts the actual fall into the undervalued green area. This was the first occasion in history when the coin consolidated at the market’s high point rather than its low point. Similarly, we are not at the extreme bottom in terms of the P-Multiple or the price right now. We could go farther lower, and the price would drop with it.
When Should you Buy?
Observing the upper low trend line of best fit is a better way of finding the best time to acquire Bitcoin that is financially favorable. The blue line is the total length of all of the P-bottoms. Multiple’s When this line is crossed, the price usually drops the greatest, especially if there is a downside deviation like there was in 2018. This bottom is now a long distance from the top.
Rekt Capital Says, “If we deviate below the line of best fit that would be the most, the best opportunity [to buy]”
It would be wise to wait for now, since the first visit into the green area does not reflect Bitcoin price bottoming. If P-Multiple reaches the blue trend line, the price of the coin may consolidate in higher ranges. This would indicate the best Bitcoin purchase opportunity.