Cryptocurrency News

AMC ‘meme stock’ frenzy may spread to crypto as bitcoin metric nears buying territory

bitcoin (B T c) is slowly but surely preparing to flash a “buy”, a leading indicator suggesting that a trading frenzy reignites memories of the Gamestop debacle.

In its latest report on June 3rd, Stack Funds highlighted the Puell Multiple near the green “buy” zone – a sign of market entry.

Take several drops to the level before 2021

Puel multiple is one of best known BTC price tool. Its readings measure the likelihood of a sell-off or an upside based on the miner’s profitability. Currently, there is no point for miners to sell, unless there is an extreme need.

Stack Head of Research Lenard Neo explained, “The metric is now trading at 1.40 levels, close to the green zone, where miners have less incentive to sell. This indicates potential buying opportunities below 1.0.” There must be many declines.”

“Having said that, we prefer to be cautiously optimistic as further downsides may occur, which in turn generates better value for anyone looking for entry points.”

Bitcoin Pull Multiple vs BTC/USD. Source: Cryptoquant

as Cointelegraph ReportedStack is not the only one to argue that the possibility of a further drop in prices should be considered. Traders are also eyeing a retracement, with at least one saying that it is certain that BTC/USD will move higher only after a retest of $36,000.

Neo further pointed to a number of other indicators, albeit anonymous, metrics pointing to a bullish continuation this week, covering the short to mid-term range.

Release memes?

A return to volatility, now firmly on the cards this week, could meanwhile come from retail traders.

In a scene reminiscent of Gamestop stock trading Getaway Since the first quarter of this year, Reddit users have turned their attention to another company’s equity and raised its price accordingly.

AMC Entertainment ($AMC) 1-Day Candle Chart (Cboe). Source: TradingView

AMC Entertainment, a loss-making United States movie theater chain, has seen huge gains — more than 1,000% year to date at one point — and filed for sale 11 million shares.

Should history repeat itself, investors may re-accept altcoins – and meme tokens in particular to complement the “mem stock” phenomenon – thereafter, some argue.

Most of the major cryptocurrencies were flat that day, however, with Dogecoin (Doge), most of the 2021 meme star, down about 1.5%.