Amr Taha
Bitcoin Mayer-Puell Composite Entered Undervalued Zone Three Times Since February
Bitcoin’s Mayer-Puell Valuation Composite 7D fell below the key 20 threshold on July 2, reaching 15.77 and marking its third move into the historically undervalued zone since February 1. Readings below 20 have often appeared during periods associated with potential major market bottoms or extended accumulation phases. However, the latest signal was less extreme than the previous cycle low, when the composite fell to 1.76 on June 23, 2022—nearly five months before the collapse of FTX in November. The timeline shows that Bitcoin had already entered the indicator’s deep undervaluation zone well before the FTX-related market disruption. The indicator has since recovered to around 25.4, suggesting an initial exit from the undervalued zone. This rebound does not confirm that Bitcoin has established a final price bottom, but it indicates that valuation pressure has eased from its early-July extreme. The composite combines the Mayer Multiple, which compares Bitcoin’s price with its 200-day moving average, and the Puell Multiple, which evaluates miners’ daily revenue relative to its 365-day average. It should not be used as a standalone trading signal and is best assessed alongside price structure, liquidity, market flows and derivatives data.