Bitcoin Puell Multiple Approaches 365-Day Moving Average Indicating Bullish Signal
On-chain data indicates that the Bitcoin Puell Multiple is nearing a crossover with its 365-day moving average (MA), historically associated with bullish price movements for BTC.
Bitcoin Puell Multiple Approaching Key Indicator
An analyst from CryptoQuant noted that the Bitcoin Puell Multiple, an on-chain indicator reflecting miners' revenue relative to the yearly average, is approaching its 365-day MA. This metric focuses on block subsidy, the reward miners receive for adding blocks to the blockchain, rather than transaction fees.
A value above 1 indicates miners are earning more than their annual average, while a value below 1 suggests lower earnings. The following chart illustrates the trend of the Bitcoin Puell Multiple alongside its 365-day MA over recent years:
The graph shows a significant decline below 1 earlier this year, attributed to the fourth BTC Halving event, which halves the block subsidy every four years. Consequently, the Puell Multiple's value dropped due to the reduced block subsidy.
Despite fluctuations, the ratio measures miner revenue in USD, linking it to BTC's market value. Following a recent rally, miner revenue has rebounded to match the 365-day MA, with the Puell Multiple now close to this critical threshold. Historical data reveals that when the metric has previously surpassed this line, BTC experienced rallies of at least 76% each time.
The potential for the Puell Multiple to break above this line remains uncertain, which could signal bullish momentum for Bitcoin or indicate a failed retest.
BTC Price Overview
Currently, Bitcoin is experiencing a slowdown in bullish activity, trading at approximately $91,900.
