According to a CryptoQuant post, Puell Multiple values are still not excessively high, meaning miners may not feel compelled to sell at the current price level.
The “Puell Multiple” is a well-known Bitcoin statistic that calculates the amount of profit mining pools are now making compared to the one-year historical average. The metric’s value is computed by dividing the daily value of an issued coin by the 365-day moving average of the same.
The indicator can be used to determine if miners are likely to sell at a specific level or not. When the Puell Multiple reaches extremely high levels, the price usually begins to peak as miners sell off their Bitcoin. Low levels, on the other hand, maybe seen during bottoms.
Now, here’s a graph that displays the indicator’s value trend over the last few years:
The peaks generated by the indicator appear to have corresponded with the tops in Bitcoin price, as shown in the graph above. Despite the recent spike in the cryptocurrency price, the present Puell Multiple values are still quite low.
The indicator’s readings were substantially higher in May when Bitcoin was at the same price levels as it is currently. This could signal that miners are under less pressure to sell right now than when BTC was at $65k.
At the time of writing, the price of BTC is around $58.9k, down 10% in the last seven days. The cryptocurrency has lost 3% of its value in the last thirty days.
The chart below depicts the price of Bitcoin over the last five days.
Bitcoin has fallen to as low as $55k after achieving a fresh all-time high above $69k. The coin has yet to show signs of recovery, having generally consolidated in recent days. It’s unknown when the coin will break free from this range-constrained environment or which direction it will go.
However, if the Puell Multiple is any indication, the currency may not have yet established a top and may still have room to expand before reaching a true high.