OPEN-SOURCE SCRIPT

BTC Puell Multiple with alert function

Updated
The Puell Multiple examines the fundamentals of mining profitability and the way they shape market cycles. It is calculated by taking a ratio of daily coin issuance (in USD) and the 365 moving average of daily coin issuance (in USD).

Interpretation of the Puell Multiple can generally be considered in the following framework:

high values indicate that current miner profitability if high compared to the yearly average. As such, the incentive for miners to liquidate their treasuries is high and greater sell pressure may be expected.

Low values indicate that current miner profitability is low compared to the yearly average. As such, income stress may become a factor, and some miners may need to start reducing hash-power by switching off rigs. This increases the hash-share of remaining miners who can then sell fewer coins to cover their operations, reducing their impact on liquid supply.

Halving events will drop the current coin issuance by 50% relative to the preceding year creating an immediate halving of the Puell Multiple also. The effect on miner profitability will thus be as per the point on low values above.

https://www.tradingview.com/x/IXRZLvzI/

Release Notes
Important notification! Weekly low values indicates very strong buy signals!
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Bitcoin (Cryptocurrency)BTCBTCUSDOscillatorsTOPTrend AnalysisVolatility

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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