The journey through the past week has seen its fair share of ups and downs. However, the digital asset market has taken the commencement of Donald Trump’s administration in stride. Notably, Bitcoin has held steady despite the uncertain winds swirling through cryptocurrencies.
Although Bitcoin’s pace has slowed somewhat lately, new on-chain data suggests there’s still potential for it to climb higher. Let’s explore how Bitcoin’s price might embark on another upward trajectory over the weeks ahead.
### Will BTC See More Price Gains?
On January 24, market intelligence firm Glassnode took to the X platform to share insights on Bitcoin’s potential. They indicated that the cryptocurrency’s price hasn’t hit an overheated state yet, pointing toward room for more growth soon. This analysis stems from the Mayer Multiple indicator, which assesses the ratio between an asset’s price and its 200-day moving average (200DMA).
The Mayer Multiple helps gauge how far Bitcoin’s price strays from its long-term average, shedding light on overbought or oversold conditions. It’s a useful tool for identifying whether a macro bull or bear trend is underway when examining cyclical price patterns.
Historically, a Mayer Multiple surpassing 2.4 hints at an overbought condition, suggesting a possible peak in the market. Conversely, a value below 0.8 denotes an oversold state, indicating a potential market bottom.
According to Glassnode’s data, Bitcoin’s current Mayer Multiple is 1.37, signaling that it remains well clear of overbought territory. This suggests BTC has space to grow during this cycle. Furthermore, Bitcoin’s price stands at least 35% above its 200DMA, a bullish indicator.
Glassnode also noted that Bitcoin would need to climb past $180,000 to appear overbought. This figure represents the potential apex for Bitcoin in this cycle, potentially setting the stage for a downturn afterward. The oversold threshold sits at 0.8, placing the bottom for Bitcoin around $60,000.
The cryptocurrency’s performance has been underwhelming since cracking $100,000, churning talks of a peak in the market. This indicator, however, offers some guidance on the potential route Bitcoin may take in the coming months.
### A Snapshot of Bitcoin’s Price
At present, Bitcoin’s price hovers just below the $105,000 mark, showing little movement over the past day.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
