Bitcoin Price Pullback Imminent?
The Puell Multiple indicator, which has been significant in previous Bitcoin market cycles, is indicating that a local top has been formed. This technical signal has appeared in 2012, 2016, and 2019, all of which were followed by a reversal in Bitcoin prices. The Puell Multiple compares the daily issuance value of BTC to the 365-day moving average of issuance value and is used to determine if Bitcoin is overbought or oversold. Currently, the high Puell Multiple suggests that Bitcoin is overbought and a price correction may be due.
Other Pullback Signals
In addition to the Puell Multiple, the Korean “kimchi premium” is also signaling a market correction. The kimchi premium occurs when BTC prices on Korean exchanges are higher than global spot prices, indicating an overheated market that is due for a pullback. However, not all analysts are predicting a correction. Some believe that the peak of the bull market will come in 2024 before entering another bear market in 2025.
Hot Take: Bitcoin Price Correction Expected
Based on historical patterns and technical indicators like the Puell Multiple and the kimchi premium, it appears that a Bitcoin price correction may be imminent. These signals suggest that Bitcoin is overbought and that a pullback is likely. However, there are differing opinions among analysts, with some expecting further upward movement in the coming months before a blow-off top. Ultimately, only time will tell how the market will unfold.
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