Bitcoin Puell Multiple Lifts Off From Buy Zone, Bull Momentum To Follow?


On-chain data shows that the Bitcoin multiplier has begun to leave its “buy” territory, an indication that the cryptocurrency may be heading for bullish momentum.

Bitcoin Puell Multiple has gone up in value in recent days

As pointed out by an analyst at CryptoQuant MailThe BTC puell multiplier is currently breaking through the historical buy zone.

The “Multiple pee“It is an indicator that measures the ratio between daily mining returns (in US dollars) and the 365-day moving average for the same.

What the value of this metric tells you is how much bitcoin miners are currently making compared to the average last year.

When the value of the index goes up, it means that mining returns are now on the rise. This increases the likelihood of miners selling and the price may be called “overvaluation”.

Related reading | On-chain data: Bitcoin whales grow at 10k + BTC

On the other hand, decreasing values ​​of the scale can indicate that the price has become undervalued due to the decline in the revenues of the miners.

Now, here is a chart showing the trend in the Bitcoin puell multiplier over the past several years:

Bitcoin Bill Multiple

The value of the metric seems to have observed some rise recently | Source: CryptoQuant

As you can see in the above chart, the Bitcoin puell multiplier has been in the “buy” zone until a short time.

Historically, this area with index values ​​below 0.5 was a sign that the price of the cryptocurrency was undervalued. Bottom bearing Formations are erected here.

Related reading | Bitcoin Funding Ratio Still Positive, Will It Go Downhill Soon?

There is also an opposite area, the “sell” area, which represents multiplier values ​​greater than 4. Naturally, BTC is overvalued in this area.

Recently, the puell multiplier has seen some rally and has now just broken out of the green. Over the past, this has usually been a sign that the cryptocurrency is now heading for bullish momentum.

However, one thing to note, is that exiting the region in the past does not necessarily mean that the rally will start immediately. There’s still a few more months of buildup before a proper run can begin.

BTC price

At the time of writing this report, Bitcoin price It is floating around $21.9K, down 1% in the past seven days. Over the past month, the value of the cryptocurrency has gained 3%.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

Looks like the value of the crypto has sunk down during the last few days | Source: BTCUSD on TradingView

After holding over $22,000 for about a week, Bitcoin appears to have dropped below the level in the past 24 hours.

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com



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