According to CryptoQuant's analysis, Bitcoin may experience a significant surge if the Puell Multiple crosses its 365-day moving average (SMA365), historically leading to substantial price uptrends.
Puell Multiple and Its Importance
The Puell Multiple is an indicator that helps understand market cycles from a mining perspective, assessing mining profitability by measuring the daily value of Bitcoin mined relative to its 365-day average.
Historical Data and Prospects
In the past five years, the Puell Multiple has only crossed its SMA365 three times. Each of these occurrences was accompanied by substantial Bitcoin price gains, averaging a 90% increase. Past breakouts include an 83% rally in March 2019, a 113% gain in January 2020, and a 76% surge in January 2024.
Additional Indicators and Forecasts
Analysts predict the bull market's most intense phase is still ahead, as Bitcoin's price has risen over 40% in Q4. The parabolic phase could push BTC/USD to new highs. However, some caution that retail FOMO might lead to a sharp correction.
CryptoQuant's analysis, along with additional indicators, suggests a significant increase in Bitcoin's price may be imminent. However, it is important to consider potential risks and market volatility.
