Bitcoin Puell Multiple Retests Downtrend Line, Will It Break Above This Time?
03 November 2022 - 8:00PM
NEWSBTC
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? Bitcoin Puell Multiple Has Gone Up A Bit During
Recent Days As pointed out by an analyst in a CryptoQuant post, a
trend reversal could be nearing in the BTC market. The “Puell
Multiple” 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. What this metric tells us is how much
the BTC miners are making right now compared to the average during
the last year. 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. 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. Related Reading: Bitcoin Rally
Fails To Budge 30-Day Volatility As It Stays At 2-Year Lows
Historically, the crypto has tended to form cyclical bottoms
whenever the indicator has declined below the 0.5 mark. Now, here
is a chart that shows the trend in the Bitcoin Puell Multiple over
the last few years: The value of the metric seems to have been
slightly going up recently | Source: CryptoQuant 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. Since then, the
indicator has been on a gradual upwards trajectory, and is now
retesting the “downtrend” line. Related Reading: Bitcoin Bullish
Signal: Whales With 1k-10k BTC Have Been Accumulating 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. 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. 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. The
analyst notes that this is now the third time that the Puell
Multiple is retesting this level during the current bear, so it’s
possible it might break through it this time. If the historical
trend is anything to go by, then the indicator breaking the line
now may lead to a bullish reversal for Bitcoin. BTC Price At the
time of writing, Bitcoin’s price floats around $20.1k, down 3% in
the last week. Looks like BTC has been going downhill | Source:
BTCUSD on TradingView Featured image from Maxim Hopman on
Unsplash.com, charts from TradingView.com, CryptoQuant.com
Quant (COIN:QNTUSD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Quant (COIN:QNTUSD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024