TL;DR
- Bitcoin bulls are anticipating a potential 90% price surge as the Puell Multiple, a key Bitcoin price metric, approaches a rare golden cross.
- Historical data shows that previous golden crosses of the Puell Multiple have resulted in substantial Bitcoin rallies.
- Favorable macroeconomic conditions, including increased institutional adoption and positive regulatory developments, support the likelihood of a strong bull rally.
Bitcoin bulls are gearing up for a potential 90% price surge as the Puell Multiple, a key Bitcoin price metric, approaches a rare golden cross. According to CryptoQuant, the Puell Multiple has crossed its 365-day moving average only three times in the past five years, each time resulting in significant price increases for Bitcoin.
This metric, which measures the daily value of mined Bitcoin against its 365-day moving average, provides insights into miner stability and market cycles from a mining perspective.
Historical Precedents and Market Sentiment
Historical data shows that previous golden crosses of the Puell Multiple have led to substantial Bitcoin rallies. In March 2019, a Puell golden cross was followed by an 83% price increase.
Similarly, January 2020 saw a 113% surge, and the most recent cross in January 2024 resulted in a 76% gain. CryptoQuant’s analysis suggests that if the Puell Multiple settles above its 365-day moving average, Bitcoin’s price could see an average increase of around 90%.
Favorable Macroeconomic Conditions
The current macroeconomic environment further supports the likelihood of a strong bull rally. Analysts at CryptoQuant highlight that favorable conditions, such as increased institutional adoption and positive regulatory developments, are boosting the odds of an inevitable price breakout.
Bitcoin’s price has already gained over 40% in Q4 2024, and the market’s parabolic phase appears to have begun, potentially lasting for around 300 days before a new macro top is established.
RSI and Market Dynamics
The Relative Strength Index (RSI), another key indicator, signals that Bitcoin’s bull market is just beginning. The RSI tends to stay above its overbought level of 70 during Bitcoin bull runs, and as of November 18, 2024, the monthly RSI measured 74.4. This suggests intense buying pressure and further supports the bullish outlook for Bitcoin.
Future Prospects for Bitcoin Bulls
As Bitcoin approaches the $100,000 mark, market sentiment remains optimistic. Analysts predict that Bitcoin’s most intense upside is still ahead, with expectations of reaching six figures for the first time in history. However, concerns about retail FOMO and potential corrections remain.
