As <a href="https://en.bitcoinhaber.net/bitcoins-steady-stance-amidst-altcoin-gains-a-glimpse-into-the-future-of-cryptocurrency-prices”>Bitcoin‘s price hovers around the $42,500 mark, having dipped to $41,637 the previous day, the cryptocurrency has experienced mostly sideways movement within a narrow range this week. This pattern has been favorable for altcoin investors, witnessing a continued recovery in positively diverging altcoins. The question arises: what are the expectations for BTC before the year ends?
BTC has historically overcome tough resistance levels in a surprising and explosive manner, but recently it has struggled to break through a significant selling wall. Bulls, who have easily breached seemingly insurmountable levels, are now facing the risk of a price decline due to the inability to close above $44,700. CryptoQuant, an on-chain analysis platform, highlighted the historical resistance of the Puell Multiple indicator and its significance for Bitcoin markets.
Analysts have observed that the Puell Multiple has reached values that previously formed significant resistance, signaling potential price corrections. Similar scenarios occurred in 2012, 2016, and 2019, each marked by a notable reversal in Bitcoin prices. The Puell Multiple measures the level of demand among investors and is often used to assess whether Bitcoin is overbought or oversold, suggesting a possible price correction for BTC before the year concludes.
The indicator, created by David Puell in 2014, typically signals overbuying above 4 and overselling below 0.5. However, this isn’t the only sign pointing to a downturn. The BTC price has been trading at a premium in the Asian market, which was encouraging for investors expecting the rise to continue. Yet, this premium has now reached an anticipated peak level that is likely to revert.
A popular crypto commentator known as CrediBULL Crypto insists that there is no need to worry about the feared price correction, anticipating an even more aggressive upward trend in the coming months as a significant opportunity period begins to conclude the multi-year cycle. According to him, the bull market peak is expected to occur in 2024, followed by the onset of a bear market at the start of 2025.
Another analyst, Ramen Panda, suggests that even the $41,000 level may not be lost in the short term, providing a more optimistic view on Bitcoin’s immediate future.