Bitcoin has struggled to surpass the $70,000 milestone for over two months, yet it has managed to maintain a position above the $60,000 level. This stability has prompted analysts to speculate about the cryptocurrency’s future movements and when it might embark on a long-awaited rally toward new price heights.
Recent analysis has drawn attention to the Puell Multiple, an indicator that some believe could signal Bitcoin ’s potential for reaching a new all-time high (ATH). This metric, which is calculated by dividing the daily issuance of Bitcoin in USD by the 365-day moving average of that issuance, serves as a measure of miner profitability and its potential impact on Bitcoin ’s price dynamics.
Historically, the Puell Multiple entering what is known as the “Green Zone” has often marked the bottom of Bitcoin ’s market cycles. When this occurs, it frequently precedes a significant upward trend in prices. This phase is characterized by Bitcoin bottoming out before starting its climb toward new ATHs. The analysis indicates that Bitcoin ’s bear markets typically conclude once the Puell Multiple hits this Green Zone, suggesting that a shift in market sentiment may be imminent.
As the Puell Multiple approaches this critical zone, signs of upward momentum are becoming more apparent. The trend of “higher lows” and “higher highs” within the Puell Multiple pattern further suggests that Bitcoin may be poised for a rally. Following previous transitions into the Green Zone, Bitcoin ’s price generally experiences a mid-term correction before embarking on its next upward trajectory.
Currently, indicators imply that Bitcoin is in the initial stages of a potentially significant upward leg. As these factors align, the prospect of a breakout to a new ATH becomes increasingly plausible, hinting at a positive shift in market dynamics for Bitcoin investors.
