Best time to buy Bitcoin is almost here

Bitcoin is down almost 50% from its ATH of May and the fear of the coin running into a bear market keeps rising. However, some people consider the price fall as an opportunity to buy as much Bitcoin as possible. While the strategy is sound, the important question is when should you buy. Popular analyst Rekt Capital, with the help of Puell Multiple, answered this question.

Buy Bitcoin?
Puell Multiple (P-Multiple) is a data science indicator that shows periods of outsized potential returns for investing in a coin when it is undervalued. It highlights the area which has preceded great buying opportunities for Bitcoin. Historically, when the indicator is in the undervalued area, the price action of the coin is usually in consolidation.

In all of Bitcoin’s history, P-Multiple has reached the undervalued zone 5 times, including the current drop.

The blue boxes on the chart indicate the initial bottom, which doesn’t directly correspond to the coin’s price fall. It is the second bottom, which settles Bitcoin’s price. Every time P-Multiple reaches the green zones, the price falls to the bottom of the market and consolidates for a while. Except for 2020 and possibly this time too.

The red box on the chart shows the crash of 2020, but it’s the yellow box that represents the actual fall into the undervalued green area. This was the first time in history when the coin consolidated at the high of the market and not at the bottom. Similarly, at the moment, we are not at the very bottom in regard to the P-Multiple or the price. We could go down further and the price would follow it.

Best Buying Opportunity
The better way of finding the right moment to buy Bitcoin which would be financially beneficial would be observing the higher low trend line of best fit. The blue line indicates the reach of all the bottoms P-Multiple has ever made. Touching this line has usually led to the most price fall, more so if there is downside deviation like the one in 2018. At the moment this bottom is far away from the line of best fit. Rekt Capital stated,

“If we deviate below the line of best fit that would be the most, the best opportunity [to buy]” (sic)

Since the first visit into the green area does not reflect Bitcoin’s price bottoming, it would only be sensible to wait for now. If P-Multiple reaches the blue trend line the king coin’s price could possibly consolidate in the higher ranges. This would denominate the best buying opportunity for Bitcoin.

Sourse: ambcrypto.com

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Category: News | Views: 125 | Added by: danyagames2007 | Tags: #Bitcoin #Bitcoin Price #BTC | Rating: 0.0/0
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