The Puell multiple — and Bitcoin’s price — can still dip further before a rebound takes hold, cautions analyst Rekt Capital.

Bitcoin (BTC) kept traders guessing with rangebound action on June 30 after a push beyond the $37,000 resistance ended in rejection.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Wyckoff stresses $32,300 support

Data from Cointelegraph Markets Pro and TradingView showed a day of reversal for BTC/USD on Wednesday, with the pair down 4.5% to hit $34,500.

After accelerating upward the day before, Bitcoin ran out of steam at $36,630 and began a retracement that erased most of its gains.

For popular trader Crypto Ed, even the run higher was lacking in substance, and after the subsequent correction, a bounce was sorely needed to preserve the bull case.

“Stronger move down=start of move to green,” he commented alongside a chart showing a downside target of $26,900.

BTC/USD price scenarios with targets. Source: Crypto Ed/Twitter

Others heralded the Wyckoff price analysis method, which is currently popular for Bitcoin, as providing key insights into what the short-term price direction could be.

Fellow trader Michaël van de Poppe, in his Wyckoff depiction, highlighted an area just above $32,000 as the do-or-die support level for BTC bulls.

“That would generate a higher low & strength towards further upwards momentum,” he told Twitter followers.

BTC/USD annotated Wyckoff structure chart. Source: Michaël van de Poppe/Twitter

The Wyckoff method has not been as eagerly accepted by everyone, with Crypto Ed on June 30 criticizing the general lack of understanding of the method’s principles and the potential for incorrect conclusions as a result.

Caution on Puell multiple bottom

For on-chain indicators, the story was conversely still bullish, even as one particular indicator left room for another BTC price low.

The Puell multiple, a classic indicator for catching undervalued periods in Bitcoin’s lifespan, is currently sitting in its broad “undervalued” zone for just the fifth time ever.

Related: Institutional investors aren’t buying Bitcoin at 50% of all-time highs… for now

As discussed by analyst Rekt Capital in a dedicated video on June 30, the Puell multiple suggests that miners have sold to cover costs, and given its descent to the “undervalued” zone, a price bottom could soon appear.

The previous four bottoms in the indicator, nonetheless, did not exactly line up with price bottoms, as those generally came shortly after the indicator had reversed upward.

“The fact that we’re in this green P [Puell] multiple region doesn’t necessarily mean to us that we’re at the very bottom,” he commented, referring to the latest chart.

“The P [Puell] Multiple can still go towards the downside, and price can still follow it as well.”

Bitcoin Puell multiple chart. Source: Bybt

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