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Mayer multiple analysis: Bitcoin is still on track to hit $180,000

Bitcoin By
Small Chance $8.6B Bitcoin Transfer Was a Hack
Small Chance $8.6B Bitcoin Transfer Was a Hack

The following are key points.

  • Bitcoin’s Mayer Multiple shows that BTC could be close to “oversold” Then, “overbought” — even at all-time highs.

  • In recent months, the gauge barely changed as BTC struggles to make a breakthrough.

  • The expectation of a blow off top in this month has decreased.

BitcoinBTC( ) “ice cold” A classic BTC pricing metric shows that the price can still rise to as high as $180,000.

According to the latest Mayer Multiple readings, even though BTC/USD has reached $120,000 it’s still not overheated.

BTC price gauge still close to “oversold”

Bitcoin’s failure to blow away the top of this bull run has put onchain indicators at the forefront as participants look for any signs of change.

Mayer Multiple remains one of those indicators which still strongly points to price growth.

“Bitcoin is at all-time highs and the Mayer Multiple is ice cold,” Frank A. Fetter is a popular quant crypto analyst, and his X account was named for the economist. commented This week’s readings

The Mayer Multiple (MM) measures the price as compared to its moving average of 200 weeks. The readings over 2.4 indicate that the price is 2.4 times greater than its 200-week moving average (MA). “overbought” conditions.

Multiples are currently trading at a price of 1.16. They’re closer to their original value. “oversold” A level of 0.8 lower than what is usually associated with a downward trend.

“I like the setup,” Fetter has been added next to a graph from the onchain data source Checkonchain. This chart showed that BTC/USD needed to be $180,000 to reach the 2,4 mark.

Bitcoin Mayer Multiple data. Source: @FrankAFetter/X

This bull cycle has been cooled compared to previous ones, with the Multiple reaching its maximum of 1.84 by March 2024. BTC/USD had traded for around $72,000 at the time according to onchain analytics. Glassnode.

Bitcoin Mayer multiple. Source: Glassnode

Axel Adler Jr. is another prominent crypto analyst. likewise described Multiple readings around 1.1 “good fuel reserve for a new upward impulse.”

BTC price on hold

Bitcoin’s volatility will continue to be a hot topic.

Related: BTC October price breakout odds low: 5 things to know in Bitcoin this week

According to current theses, if a breakout does not occur by the end the year, then the bull market will be over. may be in danger.

While short-term views see BTC prices fluctuating, the month of October traditionally has been one of Bitcoin’s highest performing months.

Bitcoin may still fall 10% to $114,000, or even its range lows.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.