The glimmer of hope Bitcoin enthusiasts have been waiting for since summer has arrived with some key metrics predicting a major price rally. CryptoQuant, an onchain analytics platform, identifies a rare ‘golden cross’ in Bitcoin’s Puell Multiple metric, which historically preceeded strong price spikes.
This month the Puell Multiple, a way to measure daily BTC mined as compared to a 365 day moving average, crossed its long term trendline. Such a price event has only happened three times in the last five years and each time has been followed by a dramatic price advance.
Historical Precedents
- March 2019: A Puell golden cross preceded an 83% rally.
- January 2020: Bitcoin soared by 113% following the signal.
- January 2024: A 76% price surge marked the last occurrence.
Bitcoin’s Bull Rally Backed by Historical Data
We are IOHK, cryptoquant contributor Burakkesmeci explained, “Puell Multiple helps us to see market cycles from a mining perspective.” Once the value settles over its 365day moving average rapid gains come to Bitcoin.
“It is a crucial indicator for evaluating mining profitability.”
Many analysts believe BTC is on the verge of a ‘strong bull rally’, as historical data indicate Bitcoin has historically risen by 90% in the 12 months following the occurrence of such a crossover.
Bitcoin’s next move is buoyed by favorable macroeconomic conditions. According to the blog post on CryptoQuant’s blog, an ‘inevitable’ bull run is more likely to materialise during a supportive economic environment.
This looks like a ‘parabolic phase’ of the market that could last about 300 days, which let’s BTC reach five figures for the first time. But experts warn it may lead to a major correction along the way driven by retail Fear of Missing Out (FOMO). “FOMO will become familiar to many as this BTC cycle continues,” Preston Pysh, co founder of The Investor’s Podcast, commented.
PlanB, who is an outstanding pseudonymous analyst and the creator of the Stock to Flow model, also revealed that Bitcoin’s main FOMO wave would arrive in early 2025. During bull markets, PlanB pointed to the Relative Strength Index (RSI), which stays above its ‘overbought’ threshold of 70. At the time of writing, BTC’s monthly RSI stands at 74.4 and this shows the bullishness.
Given that Bitcoin has been up already more than 40% Q4, the market buzz suggests it’s about to power through the roof. The Puell Multiple and other indexes are pointing to history being made as the crypto community awaits a breakout.
