Bitcoin Puell Multiple Exits Bear Market Zone – Bull Rally On its Way?

• On-chain data suggests the Bitcoin Puell Multiple, a metric measuring the ratio between daily mining revenue and its 365-day moving average, has exited the bear market zone.
• This could be an indication of the return of the bull market, as miners may be making more income than the yearly average right now.
• A shift in miner revenues can affect the price of Bitcoin, as miners are more or less likely to sell the coin depending on the break-even mark the ratio has swung in.

The on-chain data suggests that the Bitcoin Puell Multiple, an indicator measuring the ratio between daily mining revenue and its 365-day moving average, has exited the bear market zone. This could be a sign that a bull rally is on its way as miners may be making more income than the yearly average right now.

The Puell Multiple is used to assess the profitability of miners, who are responsible for validating transactions on the blockchain and receive rewards in the form of Bitcoin. When the value of this metric is greater than 1, miners are making more money than the yearly average, while values lower than 1 imply the revenues of these chain validators is less than usual.

A shift in miner revenues can have an effect on the price of Bitcoin as miners are more or less likely to sell the coin depending on the break-even mark the ratio has swung in. Analysts have pointed out that the 365-day rate of change (RoC) of the Puell Multiple is an important metric to consider in this context. RoC displays the speed at which any metric changes its value over a period. When this indicator is greater than 1, it suggests the crypto may be overvalued, while lesser than this value might mean that the coin is undervalued.

This information could be used to make more informed decisions when trading Bitcoin. Moreover, the data may also be used to better understand the current market conditions and anticipate future price movements. Although the Puell Multiple’s RoC is not the only indicator to consider, it could be one of the first indicators of a potential bull rally.