As a seasoned researcher who has closely observed the dynamic world of cryptocurrencies for nearly a decade, I find CryptoBullet’s analysis intriguing and compelling. The Puell Multiple, with its unique pattern of behavior across different market cycles, seems to offer a valuable insight into Bitcoin’s future trajectory.
For more than two months, Bitcoin hasn’t managed to surpass the $70,000 barrier, but it has consistently stayed above the $60,000 level instead.
As I delve into my research with Bitcoin’s current value surpassing $60,000, I find myself pondering over financial analysts’ predictions regarding its future course. Particularly, their discussions revolve around the potential culmination of the long-awaited surge towards significant highs, a rally that has been eagerly anticipated for some time.
One such analyst, CryptoBullet on X, has brought attention to a particular indicator— the Puell Multiple— suggesting that Bitcoin may be on the cusp of reaching a new all-time high (ATH).
Understanding The Puell Multiple
Based on CryptoBullet’s analysis, it appears that the movements of the Puell Multiple index tend to align with Bitcoin’s market trends. This could provide a hint about the direction in which the cryptocurrency might be moving next.
The Puell Multiple, calculated by dividing the daily issuance of Bitcoin in USD by the 365-day moving average of the daily issuance, is used as a measure to understand the miners’ profitability and their potential influence on Bitcoin’s price.
Historically speaking, when the Puell Multiple moves into its “Green Zone,” it’s usually a sign that Bitcoin might have found its lowest point in the market, which is often followed by a substantial increase in value. As CryptoBullet notes, this part of the cycle typically sees Bitcoin hitting its lowest before climbing toward a new all-time high (ATH).
#BTC Puell Multiple indicator
This is why I think $BTC is not done yet and we’ll get a new ATH soon
Based on this graph, it appears that Bitcoin Bear Markets (the lowest point in its price) conclude when the Puell Multiple enters the Green Zone.
Then Puell Multiple bounces as $BTC price prints the…
— CryptoBullet (@CryptoBullet1) October 6, 2024
Bitcoin Puell Multiple Hints At Potential New All-Time High
According to CryptoBullet’s examination, the Puell Multiple pattern varies throughout various market phases. Notably, he observed that Bitcoin’s bear markets usually conclude when the Puell Multiple moves into the ‘Green Zone,’ indicating that Bitcoin may have found its base price.
When a base is formed, the Puell Multiple tends to rebound, signaling the start of a notable rise in Bitcoin’s price trajectory. The importance of the Puell Multiple, as suggested by CryptoBullet, stems from its distinctive pattern of increasing low points and increasing high points.
As a crypto investor, I’ve noticed an interesting pattern: once Bitcoin enters the Green Zone, it typically undergoes a mid-term correction that coincides with the Puell Multiple forming a higher low. Following this dip, both Bitcoin’s price and the Puell Multiple usually surge upwards, frequently reaching new record highs.
At present, CryptoBullet posits that Bitcoin is just starting to ascend on its upcoming major surge. The rising bottoms and possible soaring tops in the Puell Multiple could indicate a convergence between Bitcoin’s price movement and market energy, setting the stage for another bullish trend.
As a researcher studying the dynamics of Bitcoin, I find myself intrigued by its recent trend. This pattern seems to hint at a possible near-term breakthrough towards a new All-Time High (ATH).
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2024-10-08 06:04