Bitcoin Puell Multiple Approaching 365-Day Moving Average
An analysis of the Bitcoin Puell Multiple indicator reveals that it is currently retesting its 365-day moving average (MA), which could have significant implications for the ongoing rally.
Understanding the Puell Multiple
The Puell Multiple measures the ratio between the daily revenue of Bitcoin miners and the 365-day MA. When the value exceeds 1, it indicates that miners are earning higher income than the average over the past year, potentially leading to an overvalued BTC price. Conversely, values below 1 suggest an undervaluation as miners earn less than the 365-day average.
Historical Significance of the 365-Day MA
The chart shows that when the Puell Multiple breaks above the 365-day MA, it often signals a bullish trend for Bitcoin. Conversely, a move below this line can indicate a transition towards a bearish trend. The current retest at the 365-day MA may be a critical juncture for Bitcoin’s future performance.
Similar Retest in Previous Year
Last year, the Puell Multiple also retested its 365-day MA and found support at this level, leading to a subsequent rally in Bitcoin’s price. Whether history repeats itself or if a breakdown occurs remains to be seen. A breakdown could result in a deeper correction for Bitcoin’s price.
BTC Price Struggles
Bitcoin’s price has recently declined to $40,800, reflecting its ongoing struggle.
Hot Take: Bitcoin’s Fate Hangs on Puell Multiple Retest
The retest of the Bitcoin Puell Multiple at its 365-day MA has significant implications for the current rally. A break above the MA could signal a bullish trend, while a move below may indicate a bearish transition. The historical significance of this level, as seen in previous retests, suggests that Bitcoin’s price may be at a crucial juncture. Traders and investors should closely monitor the Puell Multiple and its interaction with the 365-day MA to gauge the future direction of Bitcoin’s price.
By
By
By