272 Interactions, 4 today
According to reports, a confluence of facts and the sheer strength of memes might soon result in a sea of green for Bitcoin and altcoins.
A critical signal implies that Bitcoin (BTC) is slowly but steadily ready to flash “buy,” as a trading frenzy rekindles memories of the GameStop catastrophe.
Stack Funds’ recent analysis, released on June 3, highlighted the Puell Multiple approaching the green “buy” zone – a hint to join the market.
Puell multiple drops to pre-2021 levels
The Puell Multiple is a well-known BTC pricing tool. Its measurements predict whether a sell-off or an upswing is likely depending on miner profitability. At the moment, it makes little sense for miners to sell unless absolutely necessary.
“The measure is currently trading near 1.40, closer to the green zone, where miners have less motivation to sell. This indicates possible purchasing opportunities if the multiple falls below 1.0 “Lennard Neo, the head of research at Stack, said.
“Having said that, we prefer to be cautiously optimistic as further downside could surface, which in turn generates better value for anyone looking for entry points.”
As previously noted, Stack is not alone in believing that the possibility of another price drop is worth contemplating. Traders are also anticipating a pullback, with at least one claiming that additional rise is almost probable only if BTC/USD returns to $36,000.
Neo also mentioned numerous more, undisclosed, measures that lead to a positive continuation this week, encompassing the short to mid-term range.
Release the memes?
Meanwhile, a return to volatility, which is now clearly on the agenda for this week, might come from retail traders.
Reddit users have shifted their attention to another underperforming company’s equities and inflated its price appropriately, in a scene similar of the GameStop stock trading exploits from Q1 this year.
AMC Entertainment, a loss-making United States movie theater chain, has seen huge gains — at one point over 1,000% year to date — and filed to sell 11 million shares.
Should history repeat itself, investors could reembrace altcoins — and in particular meme tokens to complement the “meme stocks” phenomenon — next, some argue.
In the next few days altcoins will pump.
— Bitcoin and Crypto Trading for Noobs and Dummies (@btcadvisory) June 2, 2021
Most of the major cryptocurrencies were flat on the day, however, with Dogecoin (DOGE), the meme star of much of 2021, down around 1.5%.