Historical Resistance of Puell Multiple in Bitcoin Sparks Investor Interest
The cryptocurrency market, known for its unpredictable nature, has long relied on indicators to navigate its turbulent waters. Among these indicators, the Puell Multiple has emerged as a reliable predictor, particularly when it encounters historical resistance points.
The Puell Multiple, calculated by dividing the daily value of the currency issued in US dollars by the 365-day moving average of the same value, has garnered attention for its consistent influence on Bitcoin’s price movements.
Presently, the Puell Multiple is scaling heights reminiscent of critical resistance junctures witnessed in the past, notably in 2012, 2016, and 2019. Each of these junctures marked significant reversals in Bitcoin’s price trajectory.
The year 2012 stands as a testament to the impact of the Puell Multiple. When the indicator soared to levels mirroring the current readings, Bitcoin experienced a considerable correction, leaving investors reeling from the sudden downturn.
Similarly, 2016 echoed this pattern. The Puell Multiple’s ascent to familiar resistance points preceded a substantial price plummet, catching investors off guard and highlighting the indicator’s influence on market sentiment.
The significance of 2019 cannot be overlooked either, as the Puell Multiple once again took center stage. Keen-eyed investors who tracked this indicator observed how historical resistance levels at similar values prompted a sharp decline in Bitcoin prices.
This consistent correlation observed across multiple instances over the years underscores the Puell Multiple’s potential as a crucial tool for investors. Its ability to flag potential market reversals upon hitting specific resistance levels serves as a red flag, urging caution and strategic decision-making among market participants.
- Inside Bitcoin’s Options Market: $7.7 Billion Insights And $40,000 Projection
- Bitcoin Hodlers Stash Away 3 Million Coins, Embracing Long-Term Confidence