On-chain data shows the Bitcoin Puell Multiple is currently retesting the downtrend line, will the metric be able to break above it this time?<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, a trend reversal could be nearing in the BTC market.<\/p>\n The \u201cPuell Multiple<\/a>\u201d is an indicator that measures the ratio between the current daily Bitcoin mining revenues (in USD) and the 365-day moving average of the same.<\/p>\n What this metric tells us is how much the BTC miners are making right now compared to the average during the last year.<\/p>\n When the value of the multiple is greater than 1, it means miners are raking in more profits compared to the mean for the past 365 days.<\/p>\n On the other hand, values below the threshold suggest miners are under pressure right now as their income is lesser than the last year average.<\/p>\n Historically, the crypto has tended to form cyclical bottoms whenever the indicator has declined below the 0.5 mark.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin Puell Multiple over the last few years:<\/p>\n\n The value of the metric seems to have been slightly going up recently | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin Puell multiple sunk down a few months back, and entered into the historical buy zone.<\/p>\n Since then, the indicator has been on a gradual upwards trajectory, and is now retesting the \u201cdowntrend\u201d line.<\/p>\n This downtrend line has been providing resistance to the metric since around a year ago. In the chart, the quant has also marked how the trend was like in the past whenever the indicator was on a downtrend.<\/p>\n It looks like the Bitcoin Puell Multiple found rejection multiple times from a similar downtrend line during both the 2018-19 bear and the 2020 COVID crash.<\/p>\n After forming the bottoms during these two periods, the metric eventually broke through the line and a bullish trend followed in the price of the crypto.<\/p>\n The analyst notes that this is now the third time that the Puell Multiple is retesting this level during the current bear<\/a>, so it\u2019s possible it might break through it this time.<\/p>\n If the historical trend is anything to go by, then the indicator breaking the line now may lead to a bullish reversal for Bitcoin.<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $20.1k, down 3% in the last week.<\/p>\n\n Looks like BTC has been going downhill | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows the Bitcoin Puell Multiple is currently retesting the downtrend line, will the metric be able to break above it this time?<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, a trend reversal could be nearing in the BTC market.<\/p>\n The \u201cPuell Multiple<\/a>\u201d is an indicator that measures the ratio between the current daily Bitcoin mining revenues (in USD) and the 365-day moving average of the same.<\/p>\n What this metric tells us is how much the BTC miners are making right now compared to the average during the last year.<\/p>\n When the value of the multiple is greater than 1, it means miners are raking in more profits compared to the mean for the past 365 days.<\/p>\n On the other hand, values below the threshold suggest miners are under pressure right now as their income is lesser than the last year average.<\/p>\n Historically, the crypto has tended to form cyclical bottoms whenever the indicator has declined below the 0.5 mark.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin Puell Multiple over the last few years:<\/p>\n The value of the metric seems to have been slightly going up recently | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Bitcoin Puell multiple sunk down a few months back, and entered into the historical buy zone.<\/p>\n Since then, the indicator has been on a gradual upwards trajectory, and is now retesting the \u201cdowntrend\u201d line.<\/p>\n This downtrend line has been providing resistance to the metric since around a year ago. In the chart, the quant has also marked how the trend was like in the past whenever the indicator was on a downtrend.<\/p>\n It looks like the Bitcoin Puell Multiple found rejection multiple times from a similar downtrend line during both the 2018-19 bear and the 2020 COVID crash.<\/p>\n After forming the bottoms during these two periods, the metric eventually broke through the line and a bullish trend followed in the price of the crypto.<\/p>\n The analyst notes that this is now the third time that the Puell Multiple is retesting this level during the current bear<\/a>, so it\u2019s possible it might break through it this time.<\/p>\n If the historical trend is anything to go by, then the indicator breaking the line now may lead to a bullish reversal for Bitcoin.<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $20.1k, down 3% in the last week.<\/p>\nBTC Price<\/h2>\n
\nFeatured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"Bitcoin Puell Multiple Has Gone Up A Bit During Recent Days<\/h2>\n
BTC Price<\/h2>\n