The renowned expert said that Bitcoin network activity is “underwhelming,” as new information confirms that a textbook BTC price bottom is currently taking place.
BTC (bitcoin) A typical bull market can start with just one more crucial on-chain indicator, according to analyst David Puell.
The developer of the Puell Multiple claimed in a tweet on December 17 that conditions are almost right for the bear market in BTC prices to conclude.
Bitcoin network activity ‘overwhelming’
While many are calling for a new BTC/USD low of $12,000 or below for this cycle, not everyone is completely bearish on Bitcoin’s outlook.
Puell has already identified two key on-chain phenomena he needs for the BTC price to recover.
A long-term holder (LTH) is resisting the urge to sell even though Bitcoin is down more than 70% from its recent all-time high.
At the same time, short-term “speculators” are feeling a lot of pain from the recent price action. As Cointelegraph reported, these “tourists” may already have disappeared from the market. Puell believes the only thing missing is increased network activity from all participants.
“A bull’s chain requires three elements.
1. Holding behavior of long-term investors. 2. Painful losses from short-term speculators. 3. Networking activities across the board,” he summed up:
The turnaround, he continued, will benefit from “favourable” macroeconomic conditions, as well as crypto, becoming more resistant to “contagion” in the form of “exogenous and endogenous’swans,'” he said.
At the time of writing, according to information from Cointelegraph Markets Pro and TradingView, BTC/USD was trading at about $16,700.