Puell Multiple, one of the key indicators of Bitcoin (BTC), has fallen to a critical level that signals long-term buying opportunities.
The Puell Multiple, one of Bitcoin’s key market indicators, has fallen to the 0.4 range for the first time since the end of 2022. This metric is used to identify potential market tops and bottoms by comparing the daily income of Bitcoin miners (in USD) to its last 365-day average.
According to chart data shared by CryptoQuant, periods when the Puell Multiple drops to 0.4 or below generally signal market bottoms and strong buying opportunities.
The green boxes on the chart highlight the periods when these lows were reached, pointing out that these levels have historically constituted a significant bottom for Bitcoin.
On the other hand, the areas marked in red indicate periods when the Puell Multiple was extremely high (above 4-6) and usually indicates market tops. This indicated a dangerous level that could be a sell signal for investors.
Looking at the current situation, the Puell Multiple approaching the 0.4 level could indicate that Bitcoin is undervalued or at least near a market bottom.
Investors looking to make long-term savings may consider this as a buying opportunity. However, CryptoQuant emphasized that this metric alone is not sufficient and should be evaluated together with other factors such as on-chain data and macroeconomic conditions.
Stay tuned for new information.
