Good Time to Buy Bitcoin? On-Chain Data Hints at Bullish Recovery in Q3

Bitcoin has been on a rollercoaster ride lately, dipping to $53,500 after major sell-offs by the German government and Mt. Gox creditors. But wait, there’s more! The price has already bounced back to $57,500, hinting at underlying strength. And get this – even with the volatility, big institutions like BlackRock and Fidelity are still buying Bitcoin ETFs.

Is this a good buying opportunity?

Dive deeper to find out and see what the on-chain data reveals about Bitcoin’s future.

The Puell Multiple: A Bull Market Indicator?

CryptoQuant’s analysis utilizing the Bitcoin Puell Multiple indicates a potential end to the current correction phase within the ongoing bull market. Historically, significant drops in the Puell Multiple have often been precursors to strong price rallies, as observed during previous bull cycles in 2016 and 2020.

June 2024 saw substantial miner capitulation, with profitability plummeting by 7.8% since the April halving event. Daily miner revenue sharply declined from $78 million to $26 million, highlighting the market stress faced by miners.

Early Stages of a Bull Cycle

While some investors are quick to declare the end of the bull market, selling their long-term holdings in capitulation, a deeper look into on-chain data compared with previous cycles suggests that we are still in the early stages of a new bull cycle. Typically, crypto cycles begin post-halving and last for over 500 days on average.

Currently, we are 79 days post the 2024 BTC halving, indicating there’s still a long way to go in this bull cycle.

Adding to the bullish sentiment, Santiment’s data shows a decline of 566,000 non-empty Bitcoin wallets since mid-June, reflecting sell-offs by short-term holders amid market uncertainty. Historically, such reductions often present buying opportunities for patient investors.

MVRV Indicators: Best Time to Buy Bitcoin?

Both the 30-day and 365-day Bitcoin MVRV indicators are currently in the negative zone, suggesting it might be the best time to buy Bitcoin. In the past, this alignment has led to substantial returns for investors who entered the market during such periods.

Looking Ahead

With multiple indicators pointing towards a bullish sentiment, including the anticipated start of a bull run in Q3 2024 based on the Puell Multiple, Bitcoin appears poised for a potential price recovery. Investors are advised to remain cautious amid ongoing market volatility and regulatory developments. The Puell Multiple has accurately predicted the bottom, bear trap, and peak of BTC in the past three cycles.

Based on the Puell Multiple indicators, we are currently in a bear trap, which could signal an impending bullish move from this level.

Read Also: Are The Top 5 Cryptocurrencies Ready For A Bull Rally?

With on-chain data on our side, a bullish future for Bitcoin seems likely. Are you ready for the ride?