Bitcoin may be on the cusp of reaching a new all-time high (ATH) if we look at Puell Multiple, analysts say.
The cryptocurrency market is closely watching Bitcoin's movements. The world's largest digital asset has been hovering above $60,000 for months and it has yet to break the $70,000 mark.
Analysts are speculating on Bitcoin's future trajectory. They are particularly interested in when it might reach new highs with one indicator drawing particular attention.
The Puell Multiple is gaining traction among crypto observers. It measures miners' profitability and its potential impact on Bitcoin's price. The metric divides Bitcoin's daily issuance in USD by its 365-day moving average.
CryptoBullet, an analyst on social media platform X, highlighted the indicator's significance. "This is why I think BTC is not done yet and we'll get a new ATH soon," he wrote. ATH refers to all-time high. The analyst explained the indicator's historical patterns. Bitcoin bear markets typically end when the Puell Multiple reaches the "Green Zone", which often signals a market bottom.
After hitting this zone, the Puell Multiple tends to bounce. This coincides with Bitcoin's price starting its upward movement. CryptoBullet noted the importance of "higher lows" and "higher highs" in the indicator.
The current market situation is drawing parallels to past cycles. CryptoBullet believes Bitcoin is in the early stages of its next significant upward move. The indicator's pattern suggests alignment for another rally. However, caution is warranted in cryptocurrency markets. Past performance does not guarantee future results, because volatile nature of digital assets makes predictions challenging.
Bitcoin's price movements often defy conventional analysis. Regulatory changes, macroeconomic factors, and technological developments can all impact its trajectory. Investors should consider multiple factors when making decisions.
The coming weeks may provide more clarity on Bitcoin's direction. Market participants will be watching closely for any signs of a breakout. The Puell Multiple will be one of many indicators under scrutiny.