Puell Multiple Just Hit the 0.5 Green Zone – A Strong Long Reversal Signal!

The Bitcoin Puell Multiple compares the short-term revenue of miners with their average revenue over the past 365 days. Essentially, it gives insight into miner profitability and its potential impact on market trends.

In summary, it reflects the profit mining pools would make if they were selling.

- Red Zone (Above 4): Indicates that miners are in substantial profit, which could lead them to sell, potentially triggering a market correction.

- Green Zone (Below 0.5): Signals that miners are operating at a loss, or with very low profit, which may force them to shut down machines or reduce operations, often seen as a bullish reversal signal.

Historically, when the green zone was reached, it was followed by an upward price movement.

Conversely, reaching the red zone has typically preceded a downward market move.

Written by Darkfost