Although Bitcoin has failed to break above the $70,000 mark for over two months, the asset has struggled to stay above the $60,000 mark.
Amid this hold above the $60,000 price level, analysts have continued to speculate on BTC’s future trajectory, especially if the asset were to break out of the long-awaited rally to a major high.
One of those analysts, CryptoBullet on X, has done just that brought to attention to a particular indicator – the Puell Multiple – which indicates that Bitcoin is about to reach a new all-time high (ATH).
Understanding the Puell manifold
According to CryptoBullet, the behavior of the Puell Multiple indicator often correlates with Bitcoin market cycles, potentially offering a clue to where the asset is headed.
The Puell Multiple, calculated by dividing the daily issuance of Bitcoin in USD by the 365-day moving average of daily issuance, is used as a benchmark to understand the profitability of the miners and their potential influence on the price of Bitcoin.
Historically, when the Puell Multiple entered its ‘Green Zone’, it indicated that Bitcoin may have reached a market bottom, which is often the harbinger of a significant uptrend. CryptoBullet points out that Bitcoin often bottoms at this stage of the cycle before beginning its climb to a new ATH.
#BTC Puell Multiple indicator
This is why I think $BTC is not ready yet and we will be getting a new ATH soon
According to this graph #Bitcoin Bear markets end (#BTC finds the bottom) when Puell Multiple reaches the Green Zone
Then Puell Multiple bounces like this $BTC price pushes… pic.twitter.com/pL1ShFxcwE
— CryptoBullet (@CryptoBullet1) October 6, 2024
Bitcoin Puell Multiple Hints at a Potential New All-Time High
CryptoBullet’s analysis shows how the Puell Multiple has behaved across different market cycles. He specifically noted that Bitcoin bear markets tend to end when the Puell Multiple reaches the Green Zone, when Bitcoin finds a bottom.
Once this bottom is reached, the Puell Multiple begins to bounce, signaling the first significant upward movement in Bitcoin’s price movement. The meaning of the Puell Multiple, according to CryptoBullet, lies in the pattern of ‘higher lows’ and ‘higher highs’.
After reaching the Green Zone, Bitcoin’s price often experiences a medium-term correction that corresponds to the Puell Multiple creating a higher low. From this point on, both the price of Bitcoin and the Puell Multiple tend to move higher, often reaching new highs.
Currently, CryptoBullet believes that Bitcoin is in the early stages of its next major move higher. The higher lows and a potential for higher highs in the Puell Multiple could be a signal that both Bitcoin price and market momentum are preparing for another rally.
In the context of Bitcoin’s current trajectory, this suggests that a potential breakout to a new ATH could be imminent.
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
