Bitcoin Puell Multiple, an important benchmark for market analysis, has recently reached resistance levels observed in key years in Bitcoin history, particularly in 2012, 2016 and 2019. This development marks a potentially critical turning point for Bitcoin amid current price volatility.
Puell Multiple, cryptocurrency It is an important metric in the 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. This indicator is often used to measure the health of Bitcoin price and its potential future movements. When the Puell Multiple reaches higher values, it is often seen as a sign that the market is overheating and usually leads to a corrective phase.
Conversely, low values can indicate periods of impairment, indicating potential buying opportunities.
Bitcoin’s Price Drop
Koinfinans.com Besides the rising Puell Multiple, Bitcoin’s price has recently fallen below the important $42,000 threshold, as we reported. On Tuesday, Bitcoin experienced a 3% price decline. This price action is consistent with an increase in long liquidations and an increase in selling pressure, especially among short-term holders. According to many analysts, this decline is a result of increased selling pressure after a long period of significant gains.
According to the latest data from CoinGecko, BTC is trading at $42,371.96, up a modest 1.1%. The digital currency experienced notable volatility between $41,820.13 and $42,849.91 in the 24-hour trading range. BTC’s market cap is at a significant $829.73 billion, but it’s still far from its all-time high.