Amid this maintenance above the $60,000 price level, analysts have continued to speculate on BTC’s future trajectory especially when the asset would make the play out of the long-anticipated rally to a major highs.
One such analyst, CryptoBullet on X, has 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
According to CryptoBullet, the behavior of the Puell Multiple indicator often correlates with Bitcoin’s market cycles, potentially offering a clue into where the asset is headed 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, when the Puell Multiple entered its “Green Zone,” it indicated that Bitcoin may have reached a market bottom, which often preludes a significant upward trend. CryptoBullet points out that this phase of the cycle often sees Bitcoin bottoming out before starting its ascent toward a new ATH.
Puell Multiple indicator 💡 This is why I think is not done yet and we’ll get a new ATH soon According to this chart, Bear Markets end ( finds the bottom) when Puell Multiple reaches the Green Zone Then Puell Multiple bounces as price prints the… — CryptoBullet (@CryptoBullet1)
Bitcoin Puell Multiple Hints At Potential New All-Time High
CryptoBullet’s analysis shows how the Puell Multiple has behaved across different market cycles. Specifically, he noted that Bitcoin’s bear markets tend to end when the Puell Multiple hits the Green Zone, when Bitcoin finds a bottom.
Once this bottom is established, the Puell Multiple begins to bounce, indicating the first significant upward leg in Bitcoin’s price movement. The significance 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 experiences a mid-term correction that corresponds with the Puell Multiple creating a higher low. From this point, both the price of Bitcoin and the Puell Multiple tend to rally upwards, often reaching new highs.