Bitcoin’s downtrend has come to a halt after a bearish breakout and a sharp decline from $32K. The price is reversing towards $21K and above due to the 2017 all-time high of $17K-$20K area, which is acting as a strong support.
Analysts say that after looking at new data this week, the bitcoin price could already be lower or it could be “really close” to one. On June 22, renowned indicator developer David Puell shared information on current bitcoin buying and selling, which he believes “looks interesting” in a Twitter thread.
There is not much bullish opinion on the current market activity, with many sites expecting BTC/USD to drop to $14,000 or even lower. Puell believes that the correlation between long-term and short-term holders (LTH and STH) is an indication that the situation may not be as negative as people think.
Puell demonstrated that those who have been in the market longer paid less for their BTC than more recent investors, highlighting the cost basis for each category.
When can you “buy the dip”?
However, another popular on-chain statistic, the Meyer Multiple, suggests that those looking for a successful “buy drop” chance on bitcoin may be in luck. The indicator, which measures the distance of the spot price from the 200-day moving average (DMA), is indicating that the return on investment rarely improves as of June 22.
At 0.5 during bitcoin’s existence, the multiple is down 2% below the 200 DMA and 50% below the 200 DMA. Crypto entrepreneur Kyle Chase commented on the numbers.
At the time of writing, BTC is trading at $20,545 and is up 0.02 percent over the past 24 hours.