Bitcoin has historically profited from Puell Multiple lift-offs, but unique macro conditions mean what happens next is uncertain.

Bitcoin (BTC) is enjoying what some are calling a bear market rally and has gained 20% in July, but price action is still confusing analysts.

As the July monthly close approaches, the Puell Multiple has left its bottom zone, leading to hopes that the worst of the losses may be in the past.

The Puell Multiple is one of the best-known on-chain Bitcoin metrics. It measures the value of mined Bitcoin on a given day compared to the value of those mined in the past 365 days.

The resulting multiple is used to determine whether a day’s mined coins are particularly high or low relative to the year’s average. From that, miner profitability can be inferred, along with more general conclusions about how overbought or oversold the market is.

After hitting levels that traditionally accompany macro price bottoms, the Puell Multiple is now aiming higher — something traditionally seen at the start of macro price uptrends.

“Based on historical data, the breakout from this zone was accompanied by gaining bullish momentum in the price chart,” Grizzly, a contributor at on-chain analytics platform CryptoQuant, wrote in one of the firm’s ”Quicktake” market updates on July 25.

The Multiple is not the only signal flashing green in current conditions. As Cointelegraph reported, accumulation trends among hodlers are also suggesting that the macro bottom is already in.

After its surprise relief bounce in the second half of this month, Bitcoin is now near its highest levels in six weeks and far from a new macro low.

Related: Bitcoin futures data shows 'improving' mood' despite -31% GBTC premium

As sentiment exits the “fear” zone, market watchers are pointing to unique phenomena which continue to make the 2022 bear market extremely difficult to predict with any certainty.

Bitcoin has historically profited from Puell Multiple lift-offs, but unique macro conditions mean what happens next is uncertain.

Bitcoin (BTC) is enjoying what some are calling a bear market rally and has gained 20% in July, but price action is still confusing analysts.

As the July monthly close approaches, the Puell Multiple has left its bottom zone, leading to hopes that the worst of the losses may be in the past.

The Puell Multiple is one of the best-known on-chain Bitcoin metrics. It measures the value of mined Bitcoin on a given day compared to the value of those mined in the past 365 days.

The resulting multiple is used to determine whether a day’s mined coins are particularly high or low relative to the year’s average. From that, miner profitability can be inferred, along with more general conclusions about how overbought or oversold the market is.

After hitting levels that traditionally accompany macro price bottoms, the Puell Multiple is now aiming higher — something traditionally seen at the start of macro price uptrends.

“Based on historical data, the breakout from this zone was accompanied by gaining bullish momentum in the price chart,” Grizzly, a contributor at on-chain analytics platform CryptoQuant, wrote in one of the firm’s ”Quicktake” market updates on July 25.

The Multiple is not the only signal flashing green in current conditions. As Cointelegraph reported, accumulation trends among hodlers are also suggesting that the macro bottom is already in.

After its surprise relief bounce in the second half of this month, Bitcoin is now near its highest levels in six weeks and far from a new macro low.

Related: Bitcoin futures data shows 'improving' mood' despite -31% GBTC premium

As sentiment exits the “fear” zone, market watchers are pointing to unique phenomena which continue to make the 2022 bear market extremely difficult to predict with any certainty.