Bitcoin Bulls Gear Up for a Potential 90% Price Surge as the Puell Multiple Approaches a Rare Golden Cross

Bitcoin bulls are gearing up for a potential 90% price surge as the Puell Multiple, a key Bitcoin price metric, approaches a rare golden cross.

Bitcoin price could surge 90% as key metric nears ‘golden cross’

Bitcoin bulls are bracing for a potential 90% price surge as a key metric approaches a rare "golden cross" scenario.

According to data from on-chain analytics platform CryptoQuant, the Puell Multiple has crossed its 365-day moving average only three times in the past five years, and each occurrence has coincided with a substantial increase in Bitcoin's price.

The Puell Multiple measures the daily value of mined Bitcoin against its 365-day moving average, providing insight into miner stability and market cycles from a mining perspective.

Historical Precedents and Market Sentiment

Past instances of the Puell Multiple golden cross have indeed been followed by significant Bitcoin rallies, as noted by CryptoQuant's analysis.

In March 2019, a Puell golden cross preceded an 83% increase in Bitcoin's price. Another occurrence in January 2020 was followed by a 113% surge, and the most recent cross, observed in January 2024, marked the beginning of a 76% gain.

Now, if the Puell Multiple sustains above its 365-day moving average, on-chain data suggests that we could see an average increase of around 90% in Bitcoin's price.

Favorable Macroeconomic Conditions

The current macroeconomic environment also aligns with the scenario of a strong bull rally. As highlighted by analysts at CryptoQuant, favorable conditions are boosting the likelihood of an inevitable price breakout.

These conditions include increased institutional adoption, positive regulatory developments, and a fear of missing out among retail investors. Bitcoin's price has already gained over 40% in Q4 2024, and the market's parabolic phase appears to have begun.

This phase could potentially last for around 300 days before a new macro top is established.

RSI and Market Dynamics

The Relative Strength Index (RSI), another key technical indicator, signals that Bitcoin's bull market is just getting started. During Bitcoin bull runs, the RSI tends to stay above its overbought level of 70.

As of 18th November, 2024, the monthly RSI stood at 74.4, indicating intense buying pressure, which further supports the bullish outlook for Bitcoin.

Future Prospects for Bitcoin Bulls

As Bitcoin approaches the $100,000 mark, market sentiment remains optimistic. Analysts are predicting that the most intense upside for Bitcoin is still to come, with expectations of reaching six figures for the first time in the history of the cryptocurrency.

However, there are concerns about retail FOMO and potential corrections along the way.