Leading cryptocurrency Bitcoin (BTC) has been in a downward trend since June due to Mt.Gox and German government news.
At this point, while the BTC price has fallen to $ 53,600, many data are now giving bottom and rise signals.
At this point, CryptoQuant analyst examined the Bitcoin: Puell Multiple indicator in a recent analysis. According to the analyst, this indicator signals that an upward move is approaching.
CryptoQuant analyst named Crypto Dan noted a significant drop in Bitcoin Puell Multiple, a metric that measures mining profitability.
The analyst noted the success of this indicator in finding market bottoms during bear cycles and also in finding the end of corrections in bull cycles.
Stating that the market generally started to rise after the situations in which the profitability of miners decreased rapidly in a bull cycle and the Bitcoin: Puell Multiple indicator fell, the analyst pointed to the third quarter of this year for the Bitcoin rally, referring to 2016 and 2020.
“An opportunity that comes only once in a bull cycle:
Bitcoin: Puell Multiple indicator is on-chain data that shows how high the profits miners are making.
This indicator is generally good for finding the bottom of a bear market, but also for predicting the end of a correction period within a bull market.
The areas circled in red are cases where miners’ profitability decreases rapidly in a bull cycle and this indicator declines.
This indicator dropped significantly during the bull cycle in 2016 and 2020, followed by the beginning of Bitcoin’s strong rise.
Currently in 2024, Bitcoin: Similar downward movements have been detected in the Puell Multiple indicator.
Although it is difficult to pinpoint the exact end of the correction period, we can assume that the bottom is near.
“We are likely to see the beginning of a bull rally in Q3 2024.”
*This is not investment advice.
