According to ChainCatcher, crypto analyst Lark Davis said the current reading of Bitcoin’s Puell Multiple indicates that the market is nearing, or already in, the bottom area of the current cycle. His view centers on miner revenue conditions, as the Puell Multiple measures miner profitability by tracking the ratio between miners’ daily revenue and its 365-day average.
Historically, the indicator has been used to identify periods when miner income remains depressed and miners are forced to sell BTC to cover operating costs. Such phases have often coincided with cycle lows. Davis said the metric has not yet entered the green oversold zone, but signs of pressure on miners have already appeared. In past cycles, he noted, this has usually marked the beginning of the end of a bear market.
Davis also said price signals in the current cycle have been milder overall compared with historical patterns. Whether the $59,000 level can hold as the low of this cycle will become clear over the coming months, he said, while adding that the current signs are becoming clearer.