According to the fund manager, this indicator can help in deciding when to invest in Bitcoin.
Economist and Fund Manager dan tapierowho has over 25 years of experience, shared his opinion on the best time to buy bitcoin for a long-term retail investor looking to gain exposure to the digital asset market.
Tapiero offers investors a pull multiple indicator, which divides the daily coin issuance of BTC by the one-year moving average. The math behind the indicator is not the most important thing here, as the performance of the indicator says it all.
The last 4 times, the Pull Multiple has shown the exact point of each reversal in the market, including the 2018 $3000 BTC drop, which would bring huge gains for anyone who bought the bottom and then the most recent ATH sold on. of $69,000.
The average investment horizon using this indicator would be around 18 months, after which the indicator enters the “red zone” and bitcoin reverses. It is interesting to note that the multiple also correctly shows the local bottoms of each correction cycle, which means it can be used by medium term traders and investors as well.
What is happening to bitcoin now?
Several different indicators are showing that lower levels are near, and BTC will recover in the coming months. Unfortunately, factors surrounding the digital asset market show the opposite. While the above indicators have reached the bottom zone, Bitcoin itself could remain in the consolidation range for a few more months.
In previous downtrends, bitcoin was consolidating on a local bottom for a few weeks or months before entering a new uptrend. This time, we may see the same result unless the Fed eases monetary policy in the country.