While Bitcoin has struggled to surpass the $70,000 price mark for over two months, the asset has managed to maintain its value above $60,000. This resilience has kept analysts busy speculating about Bitcoin’s future movements and the timing of a long-anticipated rally to new highs.
One insightful perspective comes from an analyst known as CryptoBullet on X, who has highlighted the Puell Multiple as a key indicator suggesting that Bitcoin may be nearing a new all-time high (ATH). The Puell Multiple, which is calculated by dividing the daily issuance of Bitcoin in USD by the 365-day moving average of the daily issuance, serves as a metric to gauge miners’ profitability and their potential impact on Bitcoin’s price.
Historically, when the Puell Multiple enters its “Green Zone,” it signals that Bitcoin may have hit a market bottom, often preceding a significant upward trend. CryptoBullet emphasizes that during this phase, Bitcoin typically bottoms out before beginning its climb toward a new ATH.
CryptoBullet’s recent analysis highlights the behavior of the Puell Multiple across various market cycles. According to him, Bitcoin’s bear markets usually conclude when the Puell Multiple reaches the Green Zone, marking a potential market bottom. Once this bottom is established, the Puell Multiple tends to bounce, indicating the start of a significant upward trend in Bitcoin’s price.
The Puell Multiple, according to CryptoBullet, is particularly notable for its pattern of “higher lows” and “higher highs.” After hitting the Green Zone, Bitcoin’s price often undergoes a mid-term correction that aligns with the Puell Multiple creating a higher low. From this point, both Bitcoin’s price and the Puell Multiple generally rally upwards, frequently leading to new highs.
Currently, CryptoBullet believes that Bitcoin is in the early stages of its next major upward movement. The presence of higher lows and the potential for higher highs in the Puell Multiple suggest that both Bitcoin’s price and market momentum are gearing up for another rally. In light of Bitcoin’s current trajectory, this analysis hints that a breakout to a new ATH could be impending.