Bitcoin’s Rollercoaster Ride: Is It Time to Fly?

Bitcoin has been on a wild ride lately. After a big drop last week, it’s trying to find its footing, but it’s still stuck in a downward trend. To break out of this slump, Bitcoin needs to close above $60,000. Otherwise, the bears will keep calling the shots.

A Glimpse of Hope: The Puell Multiple

But there’s a glimmer of hope! One analyst thinks Bitcoin is getting ready to bounce back, based on a tool called the Puell Multiple. This tool helps us understand how profitable miners are, and whether Bitcoin is undervalued or overvalued.

The analyst says the Puell Multiple is showing the same pattern we saw in 2016 and 2020, right before Bitcoin exploded. This suggests that the recent drop might be coming to an end.

Breaking Through the Barriers

Even though there’s optimism, Bitcoin still needs to prove itself. It needs to close above $60,000 to signal a real change in direction. For the really cautious traders, a close above $66,000 or even $72,000 would be a much stronger signal. If that happens, Bitcoin could even test and break through $73,800.

A Stablecoin Boost and a Supply Glitch

Another positive sign is that the amount of USDT (a stablecoin) is increasing. This usually means people are getting more interested in riskier assets like Bitcoin.

However, the recent spike in Bitcoin supply from the German government is holding things back. Once the market absorbs this extra supply, the upward trend could resume.

The good news is that Bitcoin ETFs (exchange-traded funds) are buying up Bitcoin as the German government sells. This means that big investors are still interested in Bitcoin, even with the recent supply increase.