- The Puell Multiple approached a historic accumulation point
- Bitcoin Delta Cap Increased, Suggesting Price Might Not Reach $100,000 This Cycle
In what is a major development, for the first time since December 2022, Bitcoins [BTC] Puell Multiple has fallen to 0.56 on the charts.
Puell Multiple measures the relationship between the daily coin issuance and the annual average. Using this metric, market participants can identify potential bottoms and tops. When the reading is greater than 6, it means that miners earn more than the previous year’s average. In terms of price, this could be a sign that Bitcoin is close to its top.
Bitcoin at $87,593?
On the other hand, if the Puell Multiple is less than 0.5, it means that miners are earning less than they should. In other words, it implies that BTC could be near its bottom on the price charts.
Therefore, this metric position at press time indicated that the coin could soon reach a buy zone. Therefore, it is worth analyzing what happened in 2022.
According to the aforementioned chart, the price of Bitcoin was around $16,832 when the Puell Multiple was last read at the time of this publication. However, in just four months the price soon recorded an increase of +39%. What this means is that there is likely a very strong correlation between this metric and the price of the cryptocurrency.
At the time of writing, Bitcoin was valued at $63,017. Now, although history does not repeat itself exactly, the trends tend to be similar. Ergo, if we go by its previous cycles, we can predict that Bitcoin price could trade around $87,593 before the end of October.
The top is not here, but it may be close.
While this could be possible, the currency could face correction down the road. AMBCrypto also analyzed the Delta Cap to assess how far Bitcoin is from the top of this cycle.
Delta Cap is the difference between the Realized Cap and the year-to-date moving average of the Market Cap. With this metric, participants can detect the main lows and highs of the market.
In 2021, when the Delta Cap reached $340.93 billion, the price of Bitcoin began to fall. At the time of writing this article, the value of the Delta Cap was $355.86 billion.
Since this figure is higher than that seen in the previous bull market, one could assume that BTC’s top in this cycle is near. However, that might not be the case because Bitcoin’s latest all-time high has already surpassed its 2021 high.
Therefore, the Delta Cap is expected to be higher. Although the price of Bitcoin could rise towards $85,000 or $90,000, predictions of $100,000. could be a challenge.
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If history is anything to go by, while BTC could approach six figures, it could face rejection as it approaches the milestone.
Failure to overcome possible resistance could lead to massive selling and the cryptocurrency could end up trading below its very optimistic prediction.
Next: Why 860,000 XRP investors chose the altcoin this month?
This is an automatic translation of our English version.
