Bitcoin price briefly fell below $26096, the key 200-WMA level, at 7 PM UTC on Friday. The BTC price quickly rebounded and hit a 24-hour high of $26,989.
However, on-chain data indicates a bearish outlook on BTC price and it’s probably time to book some profits.
Bitcoin Price Reaches Late 2021 Level
On-chain metric Puell Multiple reached over the late 2021 level when Bitcoin started falling from an all-time high.
According to CryptoQuant, Puell Multiple is the “ratio of the daily value of the issued coin in USD divided by 365 days moving average of the daily value of issued coins in USD.” It gives clear buy and sell signals after logarithmized. Typically, values above 6 indicate a possible top and values below 0.4 indicate a possible bottom.
Analyst suggests that with every Bitcoin halving, the top for Puell Multiple is lower. It was 9 in 2013, 7 in 2017, and 3.5 in 2021. Thus, Puell Multiple hitting almost 2.0 on May 8 could be another confirmation that BTC price has likely reached near peak and may fall ahead. Currently, the Puell Multiple value is at 1.30.
BTC Price Turning Weaker
BTC prices started falling due to several factors such as macro, wrong report on BTC selloff by the U.S. government, and high Bitcoin transaction fees. If Bitcoin fell below the 200-WMA level again, the price will fall.
CoinGape Media earlier reported that Bitcoin price could fall to $24,800. Thus, the price needs to close above the key 200-WMA level this week to remain bullish.
BTC price jumped 2% in the last 24 hours, with the price currently trading at $26,822. The 24-hour low and high are $25,878 and $26,989, respectively. Furthermore, the trading volume has increased slightly in the last 24 hours.
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