Bitcoin Puell Multiple Signals Possible Bottom According to Analyst

The Bitcoin Puell Multiple is currently in oversold territory, drawing the attention of analyst Michaël van de Poppe. According to him, the historical data shows a clear pattern: every time this indicator reached this level, a market bottom followed shortly after. The Bitcoin price stands at $65K at the time of writing, a decline of 1.1% in the last 24 hours.

Bitcoin is available at OKX and Bybit.

What Does the Puell Multiple Say?

The Puell Multiple is an on-chain indicator that compares the daily issuance of new Bitcoin by miners with the 365-day average. A low value means that miners are earning relatively little compared to the historical average, which typically indicates a period of undervaluation in the market.

Van de Poppe states that the indicator is now dropping into the green zone, a level that has only been reached a handful of times in the past. Charts from Bitcoin Magazine Pro show that this pattern repeated around the bottoms of 2015, 2018, 2020 and 2022, all of which turned out to be excellent buying opportunities in hindsight.

Historical Pattern Points to Bottom

Van de Poppe draws a clear conclusion: “This time won’t be different.” In other words, he expects the current situation to again lead to a bottom formation. That is a notable statement, especially given the broader market conditions. For instance, Grayscale reports that the bear market may continue until September or October.

Yet there are also positive signals. For example, Bitcoin ETF flows have recently turned positive and Bitcoin is flowing out of Binance, which historically often indicates accumulation by long-term investors. Whether the Puell Multiple will once again act as a reliable bottom signal this time will become clear in the coming weeks.