A key Bitcoin technical indicator has entered discount territory, potentially presenting an opportunity for savvy traders.
The Bitcoin Puell Multiple has returned to the ‘discount zone’, a point historically associated with Bitcoin market funds, CryptoQuant analyst ‘Gaah’ said on Tuesday. The last time the indicator was this low was in March 2025, when the price was close to $75,000.
The Puell Multiple compares BTC miners’ daily earnings to their annual average. When it falls below 1, miners receive less than normal, indicating financial pressure and possible capitulation.
The indicator measures miners’ profitability and historically identifies potential market tops and bottoms. “These moments often mark periods of opportunity, when the Bitcoin market price is below its fair value,” he said.
Markets at an opportune time
The market is signaling that it is entering an opportune moment, the analyst said before concluding:
“Price zones where risk decreases and upside potential increases. It is precisely at these moments of pessimism that a new uptrend begins to form.”
Puell Multiple under the discount zone
“Historically, all major correction reversals have started right in these discount regions. It doesn’t guarantee an immediate bottom, but statistically it has signaled major bottoms” – By @gaah_im pic.twitter.com/NTIZCocSfK
— CryptoQuant.com (@cryptoquant_com) November 25, 2025
Bitcoin miners’ hash price has also fallen 43% in the past four months, while miners’ profitability is declining. The metric, currently $0.036 per terahash per second per day, quantifies how much a miner can expect to earn for a given amount of hashrate. according to to the Hashrate index. It is now at an all-time low.
Another metric, the Sharpe ratio, is also in the appropriate risk/reward range. The indicator is at “a level historically associated with moments of maximum uncertainty and the early stages of risk repricing.” reported CryptoQuant earlier this week.
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The Sharpe ratio measures return versus risk, so when it is close to zero, BTC has delivered poor returns, which creates a better investment setup.
Bitcoin recovery stalls
Bitcoin’s recovery has stalled as asset trading has gone sideways over the past 24 hours. BTC touched $88,000 twice in the past 12 hours, but failed to overcome the resistance there and fell back. It is currently trading at $87,600 and is starting to consolidate within this range.
“Despite a decent recovery at the start of the week, crypto markets are still showing significant short- and medium-term losses below average wallet investments,” commented Holy.
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