The data shows that Bitcoin’s price has broken the 0.55 Mayer Multiple threshold, which is the lowest level at which crypto has ever reached bottoms.
Bitcoin is now out of the zone below 0.55Mayer Multiple
The latest Weekly Report from Glassnode shows that the BTC Price has exceeded the Mayer Multiple Bottom Zone.
The “Mayer Multiple” is an indicator that measures the ratio between the current Bitcoin price and the 200-day moving average of the same.
A “moving average” (or MA in brief) is an analytical tool that takes the average of any quantity over a specified period, and as its name implies, it moves with the quantity and changes its value accordingly.
Because they remove short-term fluctuations, MAs can be very useful for studying long-term trends.
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The Mayer Multiple simply tells how far the recent value of the crypto differs from the average for the previous 200 days. It is possible to tell if the cryptocurrency is overbought/oversold based on these numbers.
Now, here is a chart that shows the trend in the Bitcoin “Mayer Multiple = 0.55” line during the last several years:
The price of the cryptocurrency appears to have risen recently. Source: Glassnode’s The Week Onchain Week 30, 2022| Source: Glassnode's The Week Onchain - Week 30, 2022
You can see that the Bitcoin price has been below the Mayer Multiple value 0.55 since very recent.
The BTC’s price trades at 45% less than its 200-day average. Historically, cyclical bottoms in the crypto’s price have formed under this level.
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It is rare to see the Mayer Multiple value less than 0.55 in this zone. The crypto closed under it on an average of 127 days during the total 4186 days of trading for the coin. BTC only has spent 3.3% of its historical history in this region.
It seems that Bitcoin has risen to the top after a period of being below this level. If history is any indication, it could be that the cryptocurrency market has reached a bottom as the bear markets are over.
BTC price
At the time of writing, Bitcoin’s price floats around $20.9k, down 5% in the last seven days. The crypto’s value has fallen 2% over the last month.
Below is a chart showing the change in coin price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Featured Image from Kanchanara, Unsplash.com. Charts from TradingView.com and Glassnode.com.