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- Category: Bitcoin
- Published: Saturday, 10 July 2021 23:03
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Bitcoin metric sees 'hell of a bounce' in move which historically heralds BTC price bottom
The Puell Multiple bounces from its latest rare trip into the 'buy' zone, and previously, BTC/USD has subsequently put in a macro bottom.
Bitcoin metric sees 'hell of a bounce' in move which historically heralds BTC price bottomMARKETS NEWS
A classic Bitcoin (BTC) on-chain indicator has seen a “hell of a bounce” even as price action stays uncertain.
In a tweet on July 9, Philip Swift, creator of analytics resource Look Into Bitcoin, highlighted a dramatic change of course for the Puell Multiple.
Advancing Puell and hash rate "a good sign"
A deceptively simple metric, Puell tracks miner behavior with a view to understanding Bitcoin market extremes.
It has served extremely well as an indicator of when BTC price tops and bottoms are likely due, and in late June dipped into its green “buy” zone for only the fifth time in history.
Thanks in part to last weekend’s record difficulty readjustment, Swift says, Puell has now reversed upwards — and if it keeps going, higher prices should logically follow.
“Hell of a bounce out of the green zone this week for the Puell Multiple,” he summarized.
“Largely down to the difficulty adjustment and increase in hashrate. Will be a good sign if we see this and hashrate continue to climb quickly as bitcoin miners come back onboard.”
As Cointelegraph reported, miners returning to work after being displaced from China will create more competition and boost the Bitcoin hash rate, with difficulty climbing once again to account for the changes.
Estimates vary greatly as to when the turbulence impacting mining will be truly over.
Bitcoin Puell Multiple vs. BTC/USD chart. Source: LookIntoBitcoin.com
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