Bitcoin hasn’t yet entered the overbought zone, according to the Mayer Multiple. Let’s explore what level BTC needs to reach to hit this territory.
Bitcoin Mayer Multiple Currently at 1.37
In a recent update shared on X, Glassnode, an analytics firm, delved into the current trends surrounding the Mayer Multiple for Bitcoin. The "Mayer Multiple" essentially gauges the relationship between Bitcoin’s current price and its 200-day moving average (MA).
Glassnode highlights:
The 200DMA serves as a trusted indicator for assessing the broader bull or bear markets. The Mayer Multiple evaluates how far Bitcoin’s price deviates from this long-term benchmark.
If the Mayer Multiple surpasses the value of 1, it signals that the cryptocurrency is trading above its 200-day MA. Conversely, a value below 1 indicates it’s trading below this key historical level.
Take a look at the chart provided by Glassnode, which illustrates the Mayer Multiple’s journey over the past few years:
As the chart shows, Bitcoin’s Mayer Multiple now stands at 1.37, indicating a significant gap above its 200-day MA. The chart also outlines three specific levels where Bitcoin’s spot price aligns with traditionally important values of the Mayer Multiple. The green line (at the bottom) represents a Multiple value of 0.8.
Historically, when BTC dips below this green line, it often points to potential oversold conditions. Presently, this level sits close to $60,000. For Bitcoin to touch this zone, its price would need to fall beneath this benchmark.
On the other hand, the red line (at the top) is currently positioned at $181,000. At this price, Bitcoin’s Mayer Multiple hits 2.4. Exceeding this figure generally signifies the asset might be venturing into overbought territory. Glassnode comments, "Even though Bitcoin is above its 200DMA, it’s still quite far from being overbought."
To transcend into overbought territory in the ongoing cycle, Bitcoin would need to soar past the $181,000 mark. Whether this will happen or if Bitcoin will peak before then remains uncertain.
The third line, colored blue in the center of the graph, simply represents the 200-day MA. This is the benchmark where the Mayer Multiple equals 1. Bitcoin briefly dropped below this line during last year’s consolidation period.
Current BTC Price
As of now, Bitcoin is trading at approximately $106,600, marking a nearly 2% increase over the past week.
