{"id":12592,"date":"2022-07-30T16:43:45","date_gmt":"2022-07-30T16:43:45","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/historically-accurate-bitcoin-metric-exits-buy-zone-in-unprecedented-2022-bear-market\/"},"modified":"2022-07-30T16:43:47","modified_gmt":"2022-07-30T16:43:47","slug":"historically-accurate-bitcoin-metric-exits-buy-zone-in-unprecedented-2022-bear-market","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/historically-accurate-bitcoin-metric-exits-buy-zone-in-unprecedented-2022-bear-market\/","title":{"rendered":"Historically accurate Bitcoin metric exits buy zone in ‘unprecedented’ 2022 bear market"},"content":{"rendered":"
Bitcoin (BTC) is enjoying what some are calling a “bear market rally” and has gained 20% in July, but price action is still confusing analysts.<\/p>\n
As the July monthly close approaches, the Puell Multiple has left its bottom zone, leading to hopes that the worst of the losses may be in the past.<\/p>\n
The Puell Multiple one of the best-known on-chain Bitcoin metrics. It measures the value of mined bitcoins on a given day compared to the value of those mined in the past 365 days.<\/p>\n
The resulting multiple is used to determine whether a day’s mined coins is particularly high or low relative to the year’s average. From that, miner profitability can be inferred, along with more general conclusions about how overbought or oversold the market is.<\/p>\n
After hitting levels which traditionally accompany macro price bottoms, the Puell Multiple is now aiming higher \u2014 something traditionally seen at the start of macro price uptrends.<\/p>\n
“Based on historical data, the breakout from this zone was accompanied by gaining bullish momentum in the price chart,” Grizzly, a contributor at on-chain analytics platform CryptoQuant, wrote in one of the firm’s “Quicktake” market updates on July 25.<\/p>\n