Is Bitcoin Overvalued? Puell Multiple Analysis and Potential ATH

Bitcoin’s price trend tends to peak during cycles when the Puell Multiple hits the red zone as highlighted by Daan Crypto Trades, a top analyst. The Puell Multiple, a crucial metric, measures the ratio of daily coin issuance (in USD) to the 365-day moving average of daily coin issuance. This indicator is essential for understanding Bitcoin’s value cycles and identifying periods of overvaluation or undervaluation relative to historical norms.

Bitcoin’s price history reveals a pattern of significant peaks and troughs. The white line on the chart indicates the price movement, showing cyclical trends that align with fluctuations in the Puell Multiple. The major support level is around $1,000, a historical floor during significant market corrections. 

When the Puell Multiple falls below 0.5, it often coincides with these support levels, suggesting Bitcoin is undervalued. A minor support level is around $10,000, a crucial psychological and technical zone where significant buying interest emerges.

On the resistance side, the primary resistance level is around $100,000. Bitcoin’s price struggles to sustain above this level. When the Puell Multiple surpasses 10, it typically marks overvaluation and price peaks. A secondary resistance zone is around $10,000. Breaching this level often leads to accelerated price movements, indicating its importance in trend analysis.

The correlation between the Puell Multiple and Bitcoin’s price is strong. Higher Puell Multiple values (above 10) typically precede market corrections. Lower values (below 0.5) suggest accumulation phases and potential price bottoms. 

The price and Puell Multiple exhibit significant volatility, reflecting the cryptocurrency market’s cyclical nature. These patterns underscore the importance of key levels in identifying potential entry and exit points.

Bitcoin price today is $70,965.47, with a 24-hour trading volume of $37,556,563,384. Bitcoin is up 3.37% in the last 24 hours, indicating a bullish trend