Bitcoin Puell Multiple is Currently in Discount Range, Will BTC Price Rise Start Soon?
Bitcoin has faced persistent selling pressure following a recent attempt to surpass $72,000. Currently, the Bitcoin (BTC) price stands at $67,536, reflecting a decline of 2.69%, with a market cap of $1.331 billion. If BTC fails to sustain the $67,000 support, it could potentially drop to $64,000.
Bitcoin Puell Multiple Flashing Buy Signal
According to CryptoQuant’s analysis, the decline in Puell Multiple after the Bitcoin halving event has important consequences for the market.
Bitcoin is halved roughly every four years, which causes the mining reward per block to be halved and directly impacts miners’ earnings. As a result, miners will experience a significant decrease in daily income unless there is a significant increase in Bitcoin price to offset this decline.
Puell Multiple, which measures the ratio between daily income and the 365-day moving average, is witnessing a sharp decline post-halving. This is due to the delay in adjusting the long-term moving average to the new mining reward reality.
This decrease in miners’ daily income means a less profitable mining environment unless there is a significant increase in Bitcoin price. According to CryptoQuant’s report, the current Puell Multiple range indicates a price reduction, indicating that the network may be undervalued.
Courtesy: CryptoQuant
Additionally, a decrease in the supply of new Bitcoin could potentially push prices up, especially if demand continues to increase. Investors may interpret Puell Multiple’s decline as a sign that the market is adjusting to a new phase of scarcity, potentially setting the stage for a market rally.
Consequently, this phenomenon may indicate a period of adjustment in the mining industry that affects the supply and demand dynamics of Bitcoin and could potentially herald significant price movements in the future.
BTC Price Consolidation
Even though the BTC price rose to $72,000 earlier this week, we are still not out of the Bitcoin consolidation phase as reported earlier this week. According to Bitcoin’s historical trends and post-halving behavior, it will still take a few more weeks for Bitcoin to make a new breakout and enter the price discovery zone.
Once this happens, BTC price will rise to $100,000 by the end of this year.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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