Bitcoin Bulls Eye 90% Price Rally
Bitcoin enthusiasts are on high alert as key indicators hint at a potential major price surge. This month, Bitcoin is showing rare breakout signs on classic price chart metrics, suggesting a strong bull rally could be imminent.
Puell Multiple and Its Impact on BTC Price
The Puell Multiple, a significant Bitcoin metric, is nearing a crucial breakout point. Historically, when this metric crosses its 365-day moving average, Bitcoin’s price often experiences substantial gains. Over the past five years, the Puell Multiple has achieved this crossover only three times, each followed by notable Bitcoin rallies.
The Puell Multiple provides insights into Bitcoin market cycles from a mining perspective. It evaluates the profitability of mining by measuring the daily value of mined Bitcoin against its 365-day moving average. When the metric crosses this moving average, it typically signals rapid price increases. Past breakouts in March 2019, January 2020, and January 2024 led to Bitcoin rallies of 83%, 113%, and 76%, respectively.
CryptoQuant, a platform for onchain analytics, notes that when the Puell Multiple stabilizes above its 365-day moving average, Bitcoin’s price tends to increase by around 90% on average. Favorable macroeconomic conditions can further enhance the likelihood of this rally.
RSI Suggests Bull Market Just Beginning
Bitcoin’s relative strength index (RSI) indicates that the current bull market might just be getting started. Analysts suggest that Bitcoin’s most intense price increases are still ahead, despite a 40% gain in the fourth quarter so far.
The market is entering what some call its “parabolic phase,” a period expected to last about 300 days before a new market peak is reached. Expectations are rising that Bitcoin could reach six figures for the first time in its history. However, there are concerns that retail investors’ fear of missing out (FOMO) could lead to a substantial correction.
Commentators predict that many will soon become familiar with the term FOMO as Bitcoin continues its current cycle. Analysts, including the pseudonymous PlanB, creator of the Stock-to-Flow price models, foresee a major FOMO wave hitting in early 2025. PlanB references the RSI, which often stays above the overbought level of 70 during Bitcoin bull runs. As of mid-November, the monthly RSI was measured at 74.4, suggesting strong bullish momentum.
Conclusion
As Bitcoin continues to show promising signs on key metrics like the Puell Multiple and RSI, the market is bracing for a significant price rally. Historical patterns and favorable conditions suggest that a 90% price increase might be on the horizon for Bitcoin, potentially marking the beginning of a new bull market phase. Investors are keeping a close eye on these developments, ready to seize opportunities as they arise.
