Bitcoin (BTC) is slowly but surely preparing to “buy,” a key indicator suggests as a trading frenzy revives memories of the GameStop disaster.
In its latest report on June 3, Stack Funds stressed that the Puell Multiple is approaching the green zone of “buying”, a signal to enter the market.
Take several drops to levels before 2021
Puell Multiple is one of the best known BTC pricing tools. His readings judge the probability of a mass sale or a rebound depending on the profitability of the miners. Nowadays, it makes little sense for miners to sell if not out of sheer necessity.
“The metric is now trading at the 1.40 level, closer to the green zone, where miners have a lower incentive to sell. That means potential buying opportunities if the multiple falls below 1.0, ”explained Stack’s head of research, Lennard Neo.
“Having said that, we prefer to be cautiously optimistic as more disadvantages could arise, which in turn generates better value for anyone looking for entry points.”
Bitcoin Puell Multiple against BTC / €. Source: CryptoQuant
As Cointelegraph reported, Stack isn’t the only one arguing that it’s worth considering the possibilities of a further price drop. Traders are also looking for a setback, and at least one says it is almost certain that there will only be an additional increase after a return to $ 36,000 per BTC / €.
Neo also noted several other metrics, albeit unnamed, that point to a bullish continuation this week, covering the short to medium term range.
Meanwhile, a return to volatility, now firmly in the charts this week, could come from retailers.
In a scene reminiscent of GameStop stock trading gaps in the first quarter of this year, Reddit users have focused their attention on the capital of another low-performing company and inflated its price accordingly. .
1-day chart of AMC Entertainment ($ AMC) (CBOE). Source: TradingView
AMC Entertainment, a U.S. loss-making movie chain, has made huge profits, at a time in excess of 1,000% annually to date, and filed a lawsuit to sell 11 million shares.
If history repeats itself, investors could embrace alternative currencies again, and in particular meme tokens to complement the phenomenon of “meme stocks,” some argue below.
He might like it last January.
First, pumping $ GME and $ AMC …
And then main crypts + altcoins.
– Allan Kilic (@AllanKilic) June 2, 2021
However, most major digital currencies remained stable on the day, with Dogecoin (Doge), the star of the meme for much of 2021, with a drop of around 1.5%. .