Puell Multiple used for medium term DCA & DCOut - tutorial on #Bitcoin / altcoins. Alright, let's dive into a review of using the Puell Multiple for medium-term DCA (Dollar-Cost Averaging) and DCOut (Dollar-Cost Out), bookmark the video and thread for later: 🧵👇

1/ This method can be a game-changer for anyone serious about optimizing their crypto investments. First, you need to add the Puell Multiple indicator to your TradingView chart. I prefer to use it with the BTC/USD pair on the Coinbase chart.

2/ I've adjusted my settings to specific zones: 6, 4, 2 for various thresholds, and here’s why. The Puell Multiple looks at Bitcoin's mining economy, specifically the revenue generated by miners.

3/ This revenue can influence price over time since miners need to cover their costs, making them compulsory sellers. The Puell Multiple is calculated by dividing the daily issuance value of Bitcoin by the 365-day moving average of daily issuance. Here's how i'll use it:

4/ Buy Zones (Green): When the Puell Multiple is near or below 0.5, it's historically been a prime time to buy Bitcoin. This indicates that the value of Bitcoin being mined daily is low relative to historical norms.

5/ Examples include the periods in late 2018, Mar-Oct2020, mid-2021, Jun2022-Jan2023, where buying Bitcoin in these zones would have yielded significant returns.

6/ Start DCOut (Yellow): When the Puell Multiple moves above 2, it signals the beginning of a phase to start taking profits. This isn't about selling everything at once but gradually reducing your exposure as the market becomes overvalued.

7/ For instance, during the peaks in mid-2019 and early 2021, starting to DCOut in these zones would have helped lock in profits before significant drops. Sure, you wouldn't have had the same gains, but let's be real, most of the people had those as "paper gains".

8/ Aggressive DCOut (White): When the Puell Multiple exceeds 4, it's often a sign that the market is extremely overvalued. Historically, these periods have been followed by substantial price corrections.

9/ While this scenario is rare, being prepared to aggressively DCOut when it happens can protect your gains effectively. What it can also do, is give you an extra tool for those "high heat moments" when we tend to forget about logic and round trip the gains.

10/ Conclusion: Using the Puell Multiple isn't about predicting exact tops or bottoms but about positioning yourself in areas of value. It helps you avoid the extremes of buying during euphoric peaks and selling during panic-driven lows.

11/ By sticking to this method, you can ensure that your decisions are driven by data and historical trends rather than emotions. Nota Bene: Remember, this indicator isn't foolproof. It works best in conjunction with other tools and a solid understanding of market dynamics

12/ Thank you for reading and let me know your thoughts on this method in the comments below. If you find this analysis helpful, a like and RT are much appreciated. 🫡