Bitcoin has struggled to break past the $70,000 price mark for over two months, but the asset has managed to stabilize above $60,000. Throughout this period, analysts have continually speculated on Bitcoin’s future, particularly when it might embark on the long-anticipated rally to new heights.
One notable analyst, CryptoBullet, has directed attention to a specific indicator—the Puell Multiple—suggesting that Bitcoin may be on the verge of reaching a new all-time high (ATH).
The Puell Multiple is calculated by dividing the daily issuance of Bitcoin in USD by the 365-day moving average of daily issuance. It serves as a measure of miners’ profitability and their potential influence on Bitcoin’s price. Historically, when the Puell Multiple enters its “Green Zone,” it indicates that Bitcoin may have reached a market bottom, often preluding a significant upward trend. CryptoBullet notes that this phase frequently sees Bitcoin bottoming out before beginning its ascent toward a new ATH.
CryptoBullet’s analysis highlights how the Puell Multiple has behaved throughout different market cycles. Specifically, it has been observed that Bitcoin’s bear markets tend to conclude when the Puell Multiple reaches the Green Zone, marking a potential market bottom. Once this bottom is established, the Puell Multiple begins to bounce, signaling the first significant upward movement in Bitcoin’s price. The importance of the Puell Multiple, according to CryptoBullet, lies in its pattern of “higher lows” and “higher highs.”
After reaching the Green Zone, Bitcoin’s price often undergoes a mid-term correction that corresponds with the Puell Multiple creating a higher low. From this point, both Bitcoin’s price and the Puell Multiple typically rally upwards, frequently reaching new highs. Currently, CryptoBullet believes that Bitcoin is in the early stages of its next significant leg up. The higher lows and potential for higher highs in the Puell Multiple may indicate that both Bitcoin’s price and market momentum are aligning for another rally.
In the context of Bitcoin’s present trajectory, this suggests that a potential breakout to a new ATH could be imminent.