Bitcoin
Bitcoin Mayer Multiple Hits Lows Last Seen at $30K Bitcoin
Bitcoin (BTC) has delivered a “healthy reset” to bullish sentiment thanks to a key BTC price indicator hitting eight-month lows. The Mayer Multiple, a crucial metric, has reached levels not seen since October 2023, suggesting a potential recovery despite the current bearish mood.
Key Takeaways
- The Mayer Multiple measures Bitcoin’s current price against its 200-day moving average.
- As of June 26, the Mayer Multiple was at 1.05, its lowest since October 2023.
- Bitcoin’s price is currently around $60,700, down 17% from recent highs.
- The Crypto Fear & Greed Index is challenging 2024 lows, indicating a bearish sentiment.
- Historical patterns suggest a potential price recovery.
Mayer Multiple Reaches Lowest Since October 2023
Bitcoin is still trading at around $60,000, but a strikingly bearish mood has accompanied its latest 17% dip. The Crypto Fear & Greed Index is challenging 2024 lows, and across social media, there are few signs that the average hodler expects a price turnaround. However, the Mayer Multiple is arguably suggesting that a recovery could soon take shape.
The indicator measures Bitcoin’s current price against its 200-day moving average, and the resulting ratio is used as a buy or sell signal. Its creator, Trace Mayer, originally gave a reading of below 2.4 as “buy” territory. Data from on-chain analytics firm Glassnode shows that as of June 26, the Mayer Multiple measured 1.05. Conversely, for the Mayer Multiple to hit the 2.4 level, the price would need to be nearly $140,000. BTC/USD last achieved a 2.4 reading in March 2021.
Source: Glassnode
Historical Context and Future Implications
The Bitcoin Mayer Multiple is now at a level not seen since October 2023, despite the price being $60.9K now versus $29.9K back in October. This indicates a healthy reset of sentiment to shift back bearish while being at twice the price. Extreme lows in the Mayer Multiple do not always correspond to BTC price floors. In mid-2022, the indicator bottomed at around 0.47, but it was another four months before the price did likewise to mark the pit of the bear market.
Source: On-Chain College
Other Indicators and Market Sentiment
Price strength is a popular topic of debate this month, as the Mayer Multiple is not the only “buy” signal currently valid. Bitcoin’s Relative Strength Index (RSI) has also dipped into “oversold” territory across multiple timeframes. On the daily chart, RSI was last at this week’s levels in August 2023 — a time at which other bull market support trendlines, such as the short-term holder cost basis, were being violated in a similar way to now.
Popular trader Jelle noted, “The last time the RSI was this low, Bitcoin had just consolidated for 3+ months, just below the key resistance at $30K. We’re looking at 3+ months of consolidation below $70K now. History repeating?”
BTC/USD traded at around $60,700 at the time of writing, per data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.