Bitcoin Puell Multiple Signals Potential Bullish Breakout: What Does It Mean for BTC?
Bitcoin Puell Multiple Hints at Bullish Reversal: Is a Breakout Coming?
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The Bitcoin Puell Multiple, a crucial on-chain metric that gauges the profitability of Bitcoin miners, is currently flashing a potential bullish reversal signal for the leading cryptocurrency. According to CryptoQuant analyst Darkfost, this indicator has recently dipped into the \”green zone,\” a historically bullish zone for Bitcoin prices. This insight was shared earlier today on the CryptoQuant QuickTake platform.
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The Puell Multiple measures the ratio between Bitcoin miners’ short-term revenue and their average earnings over the past year. This metric provides a glimpse into the overall profitability of miners and its potential impact on the broader Bitcoin market. Miners play a key role in the Bitcoin ecosystem, influencing market supply. Their decisions to hold or sell mined Bitcoin can significantly impact the price.
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Deciphering the Puell Multiple’s Zones
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The Puell Multiple is categorized into two key zones: the \”red zone\” and the \”green zone.\”
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- Red Zone: Values above 4 in this zone indicate that miners are generating substantial profits. When miners are highly profitable, they’re more likely to sell their Bitcoin holdings, potentially increasing market supply and exerting downward pressure on the price. Historically, reaching the red zone has often preceded market corrections.
- Green Zone: This zone, characterized by values below 0.5, signals that miners are operating with low profitability or even at a loss. When miners struggle to break even, they might reduce their operations or shut down their mining rigs, leading to a decrease in selling pressure and potentially creating conditions for a bullish reversal.
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According to Darkfost, the Puell Multiple recently hit 0.5, indicating that miners are currently in the green zone, suggesting a potential upward shift in the market.
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Bitcoin’s Current Market Performance and Outlook
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While a positive momentum might be on the horizon for BTC, given the current Puell Multiple trend, Bitcoin’s performance in recent days has been impressive. Particularly, following the US Fed’s rate cut announcement last Thursday, Bitcoin experienced a consistent price increase, resulting in a nearly 10% rise over the past week. Currently, the asset is trading at $62,830, despite a slight dip of 0.4% over the past day.
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Renowned crypto analyst Ali on X has shared his outlook on Bitcoin, suggesting that if BTC follows its previous two cycles, a market top could occur around October 2025.
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Featured image created with DALL-E, Chart from TradingView