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Quant Explains Why Bitcoin Bull Cycle Is Only In Phase 1

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The Bull Market Is Not Over, Phase 1 Has Just Begun

According to a CryptoQuant analyst, past cycles show that the current Bitcoin bull market isn’t over yet. The puell multiple seems to reveal where the price might head next.

The puell multiple is a BTC indicator used to tell how healthy miners’ revenue is. It’s calculated by dividing the mining revenue by the 365-day moving average (MA) of the same.

Puell Multiple= Mining Revenue USD ÷ 365 MA​ (Mining Revenue USD​)​

With the help of the metric, it becomes possible to say how much selling pressure miners are facing. When the indicator has high values, miner revenue is relatively healthy, thus miners aren’t compelled to sell. While low values could suggest they are facing considerable selling pressure.

Since miners hold large amounts of Bitcoin, significant selling pressure among them could impact the price of the cryptocurrency on a visible scale.

Now, here is how the puell multiple changed during the 2011 and 2013 bull cycles:

A new cycle doesn’t start until after a mid-cycle top post halving is reached. The below chart shows how the 2017 bull run looked like as well as how the current one may end up looking like:

At the time of writing, BTC’s price floats around $47.8k, down 1.5% in the last 7 days. Over the past month, the coin has accumulated 15% in gains. Newsbtc.com

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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