Historically Accurate Bitcoin Metric Breaks Out of Buy Zone in 'Unprecedented' 2022 Bear Market
Bitcoin has historically benefited from Puell Multiple takeoffs, but unique macro conditions mean what happens next is uncertain.
Market news
Bitcoin (BTC) is enjoying what some are calling a bearish rally and gained 20% in July, but price action continues to confuse analysts.
As the monthly close of July approaches, Puell's multiple has left its lower zone, raising hopes that the worst of the losses may be in the past.
Puell Multiple attempts to cement breakoutThe Puell Multiple is one of the best-known on-chain Bitcoin metrics. It measures the value of bitcoins mined on a given day compared to the value of those mined in the last 365 days.
The resulting multiple is used to determine if a day's mined coins are particularly high or low compared to the year's average. From this, miner profitability can be inferred, as well as more general conclusions about how overbought or oversold the market is.
After hitting levels that traditionally accompany macro price lows, the Puell Multiple is now aiming higher, which is traditionally seen at the start of macro price uptrends.
“Based on historical data, the breakout of this zone was accompanied by bullish momentum in the price chart,” Grizzly, a contributor to on-chain analytics platform CryptoQuant, wrote. in one of the company's "Quicktake" market updates on July 25.
Puell Multiple Chart (screenshot) . Source: LookIntoBitcoinThe multiple is not the only signal flashing green under current conditions. As Cointelegraph reported, hoarding trends among hodlers also suggest that the
Bitcoin has historically benefited from Puell Multiple takeoffs, but unique macro conditions mean what happens next is uncertain.
Market news
Bitcoin (BTC) is enjoying what some are calling a bearish rally and gained 20% in July, but price action continues to confuse analysts.
As the monthly close of July approaches, Puell's multiple has left its lower zone, raising hopes that the worst of the losses may be in the past.
Puell Multiple attempts to cement breakoutThe Puell Multiple is one of the best-known on-chain Bitcoin metrics. It measures the value of bitcoins mined on a given day compared to the value of those mined in the last 365 days.
The resulting multiple is used to determine if a day's mined coins are particularly high or low compared to the year's average. From this, miner profitability can be inferred, as well as more general conclusions about how overbought or oversold the market is.
After hitting levels that traditionally accompany macro price lows, the Puell Multiple is now aiming higher, which is traditionally seen at the start of macro price uptrends.
“Based on historical data, the breakout of this zone was accompanied by bullish momentum in the price chart,” Grizzly, a contributor to on-chain analytics platform CryptoQuant, wrote. in one of the company's "Quicktake" market updates on July 25.
Puell Multiple Chart (screenshot) . Source: LookIntoBitcoinThe multiple is not the only signal flashing green under current conditions. As Cointelegraph reported, hoarding trends among hodlers also suggest that the
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