Bitcoin (BTC) Whales Resurface Amid Market Adjustments to New Scarcity Phase

  • Bitcoin price could be primed for recovery as the Puell Multiple falls to show BTC is trading at discounted rates.
  • Reduced miner rewards following the April halving translate to a drop in Bitcoin supply relative to demand.
  • Bitcoin whales are buying BTC at current levels, which could precipitate a rally.

Bitcoin price recovery on the horizon as key indicators signal undervaluation and whale activity increases.

Bitcoin Price Primed For Recovery

BTC has shown weakness since May 21, taking a downward chop, followed by a consolidation before a mid-week cascade. However, the upside potential remains viable amid a sustained bullish momentum.

Bitcoin Market Value Based On Its Mining Activity

The Puell Multiple indicator is a tool that evaluates Bitcoin value based on its mining activity. It is the ratio between daily revenue and the 365-day moving average.

When this indicator reaches the discount range after a year, it typically indicates that the value of Bitcoin may be undervalued compared to historical averages.

This could present a potential buying opportunity for investors who believe that the price of Bitcoin will likely increase in the future.

With reduced mining rewards following the fourth BTC Halving on April 20, Bitcoin miners continue to suffer, until that time when Bitcoin price rises significantly to compensate for this reduction. Dwindling daily revenues for miners after the Bitcoin halving leads to a decrease in the Puell Multiple.

The current range in which the Puell Multiple is quoted confirms Bitcoin price is at a discount. It means the network is potentially cheap.

With reduced supply amid reduced miner revenues, Bitcoin price could recover as demand grows. The drop in the Puell Multiple suggests the market is adjusting to a new phase of scarcity. This is ahead of a possible rally as the long-term moving average takes time to adjust to this new reality.

Bitcoin Whales Make A Comeback

Elsewhere, the buying appetite among BTC whales is coming back. Since March there has been a drop in buying interest. The resumption shows the current price range is a suitable accumulation zone despite the widespread fear.

Conclusion

In conclusion, the current market indicators suggest that Bitcoin may be undervalued, presenting a potential buying opportunity. The Puell Multiple reaching the discount range and the renewed buying interest from BTC whales signal a possible recovery. As the market adjusts to the new phase of scarcity, Bitcoin’s price could see a significant uptick in the near future.

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