An analyst, Ali Martinez, has shared insights on X regarding where Bitcoin’s price top could be based on the Mayer Multiple. The Mayer Multiple is an indicator that tracks the ratio between the Bitcoin price and its 200 – day moving average (MA).
The 200 – day MA has historically been a crucial level for BTC, often demarcating bearish and bullish trends. The Mayer Multiple, by measuring the distance of the price from this MA, offers valuable insights. A high value of the Mayer Multiple implies the asset is trading significantly above the 200 – day MA, potentially indicating overbought conditions. Conversely, a low value could suggest a bullish reversal for BTC.
Martinez shared a chart representing the Bitcoin Mayer Multiple as an oscillator over the cryptocurrency’s history. Currently, the Bitcoin Mayer Multiple is approximately halfway to the level that typically signals overheated price conditions. This level is at the 2.4 mark, meaning when the metric reaches this value, the Bitcoin price is 2.4 times the 200 – day MA.
In the past, Bitcoin formed some of its major historical tops when it breached this line. In the current cycle, Bitcoin has yet to retest this level. For the Mayer Multiple to reach 2.4, the Bitcoin price would need to rise to around $168,500.
Another important level related to the Mayer Multiple is the 0.8 line. Similar to how the 2.4 level signals potential overheating, the 0.8 line can imply that the coin may be reaching a bottom. Earlier this year, Bitcoin successfully rebounded at this line, indicating that a transition to a bear market hadn’t occurred.
On Friday, Bitcoin’s price slipped towards the $92,000 level. However, it has since made some recovery and started the new week at $96,000. It remains to be seen whether Bitcoin will retest the top level associated with the Mayer Multiple or experience another plunge to the bottom level first.
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