Miners Continue Their Calm Before the Storm
Recent miner metrics reveal key insights into market conditions and future projections.
1. Miner Profit/Loss Sustainability
Miner Profit/Loss Sustainability
This chart shows periods of miner profitability:
Extremely Overpaid (Red): Peaks indicating potential sell-off points.
Underpaid (Blue): Extended periods of low profitability, suggesting miner strain.
Currently, miners are experiencing financial strain, indicated by significant underpaid phases.
2. Puell Multiple (SMA 365)
Puell Multiple
The Puell Multiple highlights market tops and bottoms:
High Puell Multiple: Market tops.
Low Puell Multiple: Market bottoms, potential buying opportunities.
Currently, the low Puell Multiple suggests Bitcoin is undervalued.
3. Miners' Position Index (MPI) (SMA 7)
Miners' Position Index
The MPI indicates miner selling behavior:
High MPI Values: Increased selling pressure.
Low MPI Values: Miners holding Bitcoin, indicating confidence.
Recent rises in MPI suggest potential selling pressure at current price levels.
Conclusion:
Miners are under financial strain, potentially leading to increased selling pressure. However, the low Puell Multiple indicates Bitcoin may be undervalued, presenting a buying opportunity. Monitoring these metrics is crucial for anticipating market shifts driven by miner activities.
