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The Puell Multiple or multiple of Puell bounces from its last and rare trip to the zone of "buy", and previously, the pair BTC / USD has marked a bottom after a movement of this type
A classic on-chain indicator of Bitcoin (BTC) has seen an impressive bounce even when the asset's price action remains uncertain.
In a July 9 tweet, Philip Swift, creator of the Look Into Bitcoin analytics resource, highlighted a drastic turnaround for the Puell Multiple.
Puell's advance and hash rate are "a good sign"
A fairly simple metric, the Puell multiple tracks miners' activity in order to understand the extremes of the Bitcoin market.
It has worked very well as an indicator of when the price of BTC is likely to have hit highs and lows, and at the end of June it plunged into its "buy" green zone for only the fifth time in history.
Analysts Say Erratic Bitcoin Price Behavior Is "Typical Of Low Liquidity Markets"
Thanks in part to the record readjustment of mining difficulty last weekend, Swift says, the Puell multiple has now reversed its course to the upside, and if it continues, the price of BTC should logically rise.
"Fuck bounce out of the green zone this week for the Puell Multiple," he summed up.
"Largely due to the difficulty setting and increased hashrate. It will be a good sign if we see this and the hash rate continue to climb rapidly as bitcoin miners get back on the bandwagon."
As Cointelegraph already told you, miners who resume operations after being displaced from China will create more competition and boost the Bitcoin hash rate, and the difficulty will rise again to account for these changes.
The price of Bitcoin does not give truce in Latam
Estimates vary widely as to when the mining turmoil will actually end
The Importance of Grayscale Unlocking
Bitcoin price action is showing strength as the weekend progresses, something that, however, could lead to a reversal in tune with recent short-term trends.
Grayscale's upcoming unlock events are still a topic of conversation, but opinions differ as to whether the BTC / USD pair will be affected.
Data for new entities in Bitcoin is near its all-time peak, as analyst announces 'positive whale activity'
"This topic is the next big narrative," said trader Michaël van de Poppe in an update on Saturday, putting it next to topics like the expiration of Bitcoin options.
He added that the negative bias is already active in all cryptocurrency markets, which can give undue credibility to unlocking as a threat to price stability.