Bitcoin

April

On-chain data shows the Bitcoin Puell Multiple is close to setting new highs for 2023, a sign that a top may be becoming more likely for BTC. 
<h2 id="bitcoin-7-day-ma-puell-multiple-has-surged-recently">Bitcoin 7-Day MA Puell Multiple Has Surged Recently</h2> 
As pointed out by an analyst in a CryptoQuant Quicktake <a href="https://cryptoquant.com/insights/quicktake/655b2958ddc9c407ec2b2e3f-Puell-Multiple-close-to-2023-highs" target="_blank" rel="noopener nofollow">post</a>, the Puell Multiple is currently at the second highest level for the year. The “<a href="https://bitcoinist.com/puell-multiple-says-bitcoin-miners-dont-want-to-sell-at-this-level/" target="_blank" rel="noopener ">Puell Multiple</a>” is an indicator that keeps track of the ratio between the daily Bitcoin miner revenue and the 365-day moving average (MA) of the same. 
When the value of this metric is greater than 1, it means that the miners are currently earning more than the average for the past year. On the other hand, the indicator being below the mark suggests these chain validators are making less than usual right now. 
One way to perhaps gauge the “true value” of Bitcoin is through the cost that miners incur for producing more of the cryptocurrency. Thus, when miners are making much more than the yearly average, it could be a sign that the asset may be becoming overpriced. 
Similarly, the opposite case might imply an undervalued state for the asset. Now, here is a chart that shows the trend in the 7-day MA of the Bitcoin Puell Multiple over the last few years: 
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://i0.wp.com/img.cryptoquant.com/3285/quicktake/j7FB5Hq_9461eefa9b19f0a23b166f412d5d0825ea819237eca6f034e2b7bde43aa2b246.png?resize=1280%2C515&amp;ssl=1" alt="Bitcoin Puell Multiple" width="1280" height="515" data-recalc-dims="1"> 
As displayed in the above graph, the 7-day MA Bitcoin Puell Multiple has been above 1 recently and has registered some sharp uptrend. This recent rise in the metric is naturally a result of the rally that the asset has observed, which has taken its price above the $37,000 level. 
Following the surge, the miners are obviously enjoying much higher revenues than they have during the last 365 days. The current disparity is in fact the second highest it has been all year, as the indicator’s value is now floating just below the 2023 high set back in July. 
Interestingly, as the quant has highlighted in the chart, it has been a bearish signal for the coin the last three times the 7-day MA Puell Multiple has arrived around the same levels as now. 
That said, many other major tops in the asset have only occurred at much higher levels of the Puell Multiple. The first half of&nbsp; the2021 <a href="https://bitcoinist.com/unstoppable-bitcoin-hashrate-miners-bull-run/" target="_blank" rel="noopener ">bull run</a> top, for instance, occurred when the indicator had crossed a value of 3, while the <a href="https://bitcoinist.com/the-same-bitcoin-trigger-that-sparked-239-rally-in-april-2019-is-back/" target="_blank" rel="noopener ">April 2019</a> rally saw its peak coincide with a value of 2. 
If the same pattern as the last three instances follows this time as well, then Bitcoin might be close to forming a top. However, if the current run goes the same way as those other rallies instead, then miners might still have more space for growth before the cryptocurrency becomes too overheated. 
<h2 id="btc-price">BTC Price</h2> 
After slipping under the level earlier, Bitcoin has recovered back above $37,000 again recently. 
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/rF266laq/" alt="Bitcoin Price Chart" width="1534" height="869">

Bitcoin Puell Multiple Nears 2023 Highs: Why This Could Signal A Top

Table of Contents

Bitcoinist

Other articles published on Nov 21, 2023

Solana’s Phantom wallet rolls out cross-chain swapper to bring liquidity from Ethereum

Factors That Will Increase Cardano Price

Bad Idea AI Chatbot 3.0: Elevating Telegram Chat Experiences with Advanced AI

SEC sues Kraken crypto exchange due to illegal operation

Bitget Expands Ecosystem with the listing of Vertex (VRTX) Token

XRP Whales Make Significant Moves, Impacting Price: Here’s What You Need to Know

Join our free newsletter for daily crypto updates!