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    Bitcoin’s Puell Multiple suggests a potential 90% price surge based on historical patterns

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    Bitcoin’s Puell Multiple, a measure of the cryptocurrency’s average price, indicates a possible price surge of 90%. This theory is based on patterns where each time the Puell Multiple crossed its 365-day moving average, Bitcoin’s price significantly increased. Historical data reveals this has happened only three times so far, each occurrence resulting in massive price rallies. However, this is not investment advice, and Bitcoin’s market behaviour should be studied thoroughly before any investment is made.

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    Bitcoin, also known as BTC, could be heading for a massive price boost, in case the behavior of a traditional BTC price measure, repeats previous patterns. On November 18, the analytics platform CryptoQuant indicated a rare golden cross for Bitcoin’s Puell Multiple on its Quicktake blog.

    If the Puell Multiple, which is a way to calculate average BTC price, explodes, Bitcoin enthusiasts could see a swell in BTC price by 90%. The calculations are based on past behaviors and show that BTC/USD price significantly surged each time the metric crossed its 365-day moving average, which only happened three times so far. In short, the Puell Multiple helps us see market patterns from a miner’s point of view, which increases its importance for figuring out how profitable mining actually is.

    Puell Multiple measures the daily mined bitcoins’ value against their 365-day average – it shines a light on the stability of miners. Whenever it crosses the moving average line, the BTC price usually starts climbing rapidly. For example, in March 2019, the Puell golden cross resulted in an 83% rally, whereas in January 2020, it sparked a 113% upside.

    The most recent cross, which took place in January 2024, resulted in a 76% return. Simply put, historical data shows that once the Puell Multiple goes above its SMA365, Bitcoin’s price increases by approximately 90%. Strong macroeconomic conditions could also increase the likelihood of another Bitcoin boom.

    Analysts believe that Bitcoin’s best days are yet to come, as it has risen by more than 40% in Q4. Some even suggest that the market’s “parabolic phase” has started and can last for about 300 days before a new macro top sets in. While many are excited about Bitcoin potentially reaching six figures for the first time, there is concern about the Fear of Missing Out (FOMO) leading to a major correction. This article doesn’t provide investment advice or recommendations, so please do your homework before making decisions related to Bitcoin.

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