How the Bitcoin Puell Multiple Predicts Future Price Bottoms

The Puell Multiple has established itself as one of the most reliable technical tools for predicting market cycles. According to analyses by BlockBeats, this indicator developed by Glassnode has been remarkably accurate since 2015 in signaling when Bitcoin markets may be bottoming out. The current reading of the Puell Multiple at 0.67 highlights the importance of this tool for market participants seeking to understand long-term price dynamics.

How the Puell Multiple Works

The Puell Multiple is based on an elegant mathematical logic: it is calculated by dividing the daily Bitcoin miner revenue by its 365-day moving average. This quotient reveals how current miner earnings differ from their long-term average. When miners want to maximize their profits, they sell Bitcoin holdings at prices above their production costs. Conversely, a low Puell Multiple—typically below 0.50—indicates miners are capitulating and liquidating their positions, which often coincides with market bottoms.

Historical Patterns: Puell Multiple as an Early Indicator System

Analysis of historical data shows consistent patterns that have established the Puell Multiple as an early indicator system. Whenever this value drops below the 0.50 mark, it typically manifests as a turning point in Bitcoin cycles. Analyst ali_charts has documented that this pattern has worked for over a decade. The market conditions are subtly revealed through this metric—namely, through the behaviors of the mining industry, which acts as an early warning system for larger price movements.

Current Situation and Market Interpretation

With a current Puell Multiple of 0.67, the indicator is in the yellow zone. This suggests that while miner revenues are above the long-term average, the extreme capitulation signals that typically precede previous bottoms have not yet appeared. Nevertheless, the Puell Multiple remains a valuable tool for assessing market conditions and potential price scenarios. For market participants tracking long-term trends, this system provides continuously updated insights into the dynamics between miner activity and market cycles.