Bitcoin could see a “strong bull rally” if one classic BTC price indicator repeats its historical breakout.
CryptoQuant, an on-chain analytics platform, displayed a rare golden cross for the Bitcoin (BTC) Puell Multiple in one of its Quicktake blog posts on November 18.
Puell Multiple is close to the BTC price breakout line.
In the unlikely event of a Puell Multiple breakout, Bitcoin bulls will benefit from a 90% surge in BTC price on average.
CryptoQuant, analyzing its behavior over the past five years, shows that the indicator has crossed its 365-day moving average only three times. Each time, BTC/USD “experienced significant price surges.”
“The Puell Multiple helps us understand market cycles from a mining perspective,” said CryptoQuant contributor Burakkesmeci.
“It is an important indicator to evaluate mining profitability.”
Bitcoin Puell Multiple Chart. Source: CryptoQuant
Puell measures the daily value of mined Bitcoin as a 365-day moving average, providing insight into miner stability. BTC price tends to rise quickly when the value crosses the moving average trend line.
An 83% rally followed the Puel Golden Cross in March 2019. There was an upside of 113% in January 2020, and the most recent crossover in January 2024 provided a return of 76%.
“This data shows that historically Bitcoin price has risen by about 90% on average after the Puell Multiple has settled above SMA365,” the post said.
CryptoQuant said favorable macroeconomic conditions are helping increase the chances of an “inevitable” rally.
“All of these data points and the macroeconomic framework suggest that a strong rally could be just around the corner,” he said.
RSI signals that the Bitcoin bull market is just beginning.
As Cointelegraph reported, various analysts now believe Bitcoin’s strongest upside still remains despite BTC/USD rising more than 40% in the fourth quarter so far.
relevant: BTC price approaches $90,000 weekly. — 5 things to know about Bitcoin this week
The “parabolic phase” of the market has conceptually begun and will last for about 300 days before a new macro normal begins.
Locally, expectations are growing that Bitcoin will reach six figures for the first time in history, tempered by concerns that retail “FOMO” could force a significant correction.
Commentator Preston Pysh, co-founder of The Investor’s Podcast, predicted in this week’s
Earlier this month, PlanB, the pseudonymous analyst who created the Stock-to-Flow suite of BTC pricing models, predicted a major FOMO wave would hit in early 2025.
PlanB noted that the Relative Strength Index (RSI) has tended to remain above the “overbought” level of 70 throughout the Bitcoin bull market. The monthly RSI measured 74.4 on November 18, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-month chart with RSI data. Source: TradingView
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