The Puell Multiple indicator indicates that miners are making good profits, but not excessive profits. Historically, in cases where miners were making excessive profits, this led to price fluctuations, especially in cases of Bitcoin’s price peak. Therefore, in the current situation, it can be said that Bitcoin is neither at the top nor the bottom. Compared to previous cycles, the indicator shows that in cases where miners’ profits reached excessive levels, there was a price decline. This is what happened in the 2021 cycle and the 2017 cycle. Therefore, if the price of Bitcoin continues to rise and in return, miners’ profits rise to an excessive level, then price fluctuations are likely to occur, and this is indicated by the indicator exceeding the areas 2.0-3.0
Written by Arab Chain
