After falling 4.5% last day, BTC is trading at $ 32,782 at press time. It should be noted, however, that $ 36,500 is a difficult level for Bitcoin at this point. The oversold character is reflected in BTC’s short-term candles, which are currently slowly rising to medium-term candles.

This is what the famous analyst Nick Mancini comments speak:

“History tells us that activity at oversold levels can add to losses, but BTC has to break out at some point. A lot is at stake here. “

Show an example of “a lot of bets are placed here,” Nick emphasize:

“Open interest for Bitcoin is now at its highest level since May 20th.”

Bitcoin Open Contract | Source: Nick

In fact, on June 30th, Bitcoin Open Interest is at its highest level since May 20th of this year. With the increase in outstanding contracts and the inflow of money into the market, the “extreme fear” prevailing in the market has been reduced significantly to “fear”.

Renowned analyst Nebraskan Gooner comments on short-term Bitcoin price promotions said:

“My low expectations of the time frame are sinking a bit.”

“I doubt we’ll see any major downside, correction, or consolidation in the low timeframe before moving up any further.”

At this stage, Bitcoin price appears to be forming a crab pattern. According to the anonymous analyst Bitcoinsensus, the price of BTC is likely to hit up to $ 48,000 once the model is completed.

Crab model | Source: Bitcoinsensus

While the long-term outlook for Bitcoin currently appears optimistic, an immediate turnaround is unlikely.

Best Time To Buy Bitcoin?

Bitcoin is down nearly 50% from its all-time high (ATH) in May, and fears that the coin will encounter a bear market continue to mount. However, some see the falling price as an opportunity to buy as much Bitcoin as possible. While the strategy is right, the important question is: when to buy? The renowned analyst Rekt Capital answered this question with the help of the Puell multiple indicator.

The Puell multiple (P multiple) is a data science indicator that shows periods of outstanding potential returns for investing in a coin when it is of low value. P-Multiple highlights the area that created a great buying opportunity for Bitcoin. In the past, price action has often consolidated when the indicator is in an undervalued area.

In the entire history of Bitcoin, P-Multiple has hit the undervalued zone 5 times, including the current decline.

The blue boxes on the chart indicate the initial low, which does not directly correspond to the coin’s downward movement. But the second low has the effect of valuing Bitcoin. Every time the P-multiple hits the green zones, the price drops to the bottom of the market and consolidates for a while. Except for 2020 and maybe this time.

Puell Several historical parts | source: Rect capital

The red box on the chart represents the breakdown in 2020, but the yellow box represents a decline into the undervalued green. This marked the first time in history that BTC consolidated at the top of the market rather than the bottom. We are also not at the bottom of the P-multiple or the price at the moment. Hence, there is a possibility that the indicator will keep falling and the price will follow.

A better way to find the right time to buy bitcoin is to be financially viable by watching the trend line up. The blue line shows the range of all floors that P-Multiple has ever made. Touching this line usually leads to the biggest price drop and even more if it deviates like 2018. Right now, this low is nowhere near the most relevant line. Rekt Capital says:

“If we deviate below the most relevant line, that would be the best opportunity to buy.”

The most suitable line | source: Rect capital

Since the first approach in the green area does not reflect the bottoming out of the Bitcoin price, waiting sounds more reasonable at the moment. When the P-multiple hits the blue trendline, the price of BTC is likely to consolidate in the higher ranges. This means the best buying opportunity for Bitcoin.

Minh Anh

According to AZCoin News

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