Bitcoin

Resistance

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The Puell Multiple, a crucial metric for Bitcoin market analysis, has recently <a href="https://cryptoquant.com/insights/quicktake/658b361b25e6c44e48a01239-The-Importance-of-the-Historical-Resistance-of-the-Puell-Multiple-Indicator-in-B?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=joaowedson" rel="noopener noreferrer nofollow">reached</a> resistance levels previously observed during pivotal years in Bitcoin's history, specifically in 2012, 2016, and 2019. This development marks a potentially critical juncture for Bitcoin amidst its current price volatility.
<h2 id="understanding-the-puell-multiple">Understanding the Puell Multiple&nbsp;</h2>
The Puell Multiple is an important metric in the cryptocurrency world. It is calculated by dividing the daily issuance value of Bitcoins (in USD) by the 365-day moving average of the daily issuance value.&nbsp;
This indicator is often used to gauge the health and potential future movements of Bitcoin's price. When the Puell Multiple reaches higher values, it is typically seen as a sign of market overheating, often leading to a corrective phase.&nbsp;
Conversely, lower values can indicate periods of undervaluation, suggesting potential buying opportunities.
<h2 id="bitcoin-s-price-dip">Bitcoin's price dip&nbsp;</h2>
Alongside the rising Puell Multiple, Bitcoin's price has recently dipped below the significant $42,000 threshold.&nbsp;
On Tuesday, Bitcoin experienced a 3% price drop. This price movement aligns with an increase in long liquidations and a spike in sell pressure, especially among short-term holders.
This downturn is a result of increased sell pressure after a prolonged period of substantial gains, according to multiple analysts.&nbsp;
According to the latest data from CoinGecko, <a href="https://u.today/bitcoin-to-400000-max-keiser-points-to-btc-price-growth-estimate" rel="noopener noreferrer nofollow">Bitcoin</a> is trading at $42,371.96, marking a modest 1.1% increase.&nbsp;
The digital currency has experienced a notable fluctuation in its 24-hour trading range, oscillating between $41,820.13 and $42,849.91.&nbsp;
Bitcoin's market capitalization stands at a substantial $829.73 billion, but it is still far from its all-time peak.&nbsp;

Major Bitcoin Indicator Reaches Significant Resistance

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