- Bitcoin’s Puell Multiple, a key indicator of market tops and bottoms, has dropped to a potential accumulation point, suggesting a possible buying opportunity before a potential 39% rally.
- However, Bitcoin’s Delta Cap has surged, indicating that the price might not hit $100,000 this cycle.
- Historical data shows a strong correlation between the Puell Multiple and Bitcoin’s price, with the last time this metric was at its current level, Bitcoin’s price saw a +39% hike within four months.
Bitcoin’s Puell Multiple suggests a potential buying opportunity before a possible 39% rally, but the surging Delta Cap indicates the price might not hit $100,000 this cycle.
Bitcoin’s Puell Multiple Hits Historical Accumulation Point
For the first time since December 2022, Bitcoin’s Puell Multiple has dropped to 0.56. This metric measures the ratio between the daily coin issuance and the yearly average, helping market participants identify potential market bottoms and tops. A reading greater than 6 indicates that miners are earning more than the average of the previous year, suggesting that Bitcoin might be close to its market top. Conversely, a reading less than 0.5 implies that miners are earning less than they should, indicating that Bitcoin might be close to its market bottom.
Potential for Bitcoin to Reach $87,593?
Given the current position of the Puell Multiple, Bitcoin might soon hit a buying area. Historical data shows that the last time the Puell Multiple was at its current level, Bitcoin’s price was around $16,832. Within just four months, however, the price recorded a +39% hike. If history repeats itself, Bitcoin’s price might trade at around $87,593 before the end of October.
Delta Cap Indicates Top Might Be Close
While a potential rally might be on the horizon, Bitcoin might face correction along the way. The Delta Cap, the difference between the Realized Cap and the life-to-date moving average of the Market Cap, can help spot major market bottoms and tops. Currently, the Delta Cap is at $355.86 billion, higher than the $340.93 billion seen in the previous bull market. This might suggest that Bitcoin’s market top this cycle is close. However, since Bitcoin’s latest all-time high has already surpassed its 2021 high, it is expected that the Delta Cap would be higher. While Bitcoin’s price might hike towards $85,000 or $90,000, the $100,000 predictions might be challenging.
Conclusion
Bitcoin’s Puell Multiple suggests a potential buying opportunity before a possible 39% rally. However, the surging Delta Cap indicates that the price might not hit $100,000 this cycle. While Bitcoin might come close to six figures, it could face rejection as it approaches the milestone, potentially triggering sell-offs and trading lower than its very optimistic prediction.
