Bitcoin To Top Above $168,500 Based On This Indicator, Analyst Reveals
23 Diciembre 2024 - 2:00PM
NEWSBTC
An analyst has explained how Bitcoin could see a top beyond the
$168,500 mark based on the historical trend in this indicator.
Bitcoin Mayer Multiple Could Reveal Location Of Next Price Top In a
new post on X, analyst Ali Martinez has discussed where the BTC top
could lie based on the Mayer Multiple. The “Mayer Multiple” refers
to an indicator that keeps track of the ratio between the Bitcoin
price and its 200-day moving average (MA). The 200-day MA has
historically proven to be a significant level for BTC, often
serving as the boundary between bearish and bullish trends. As
such, the distance of the price from this MA, which is what the
Mayer Multiple measures, can be useful to watch. Related Reading:
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Explains Why When the Mayer Multiple has a high value, it means the
asset is trading significantly above the 200-day MA, which could
imply potential overbought conditions. On the other hand, the
metric being low could suggest a bullish reversal may be due for
BTC. Now, here is the chart shared by Martinez that shows the trend
in the Bitcoin Mayer Multiple represented as an oscillator over the
history of the cryptocurrency: As is visible in the above graph,
the Bitcoin Mayer Multiple is currently around halfway to the level
that has usually signaled overheated conditions for the coin’s
price. The level in question is situated at the 2.4 mark. When the
metric assumes this value, the price of the asset becomes 2.4 times
the 200-day MA. In the same chart, a price line corresponding to
this level is also shown. It’s apparent that Bitcoin formed some of
its major historical tops when it broke through the line. So far in
the current cycle, Bitcoin hasn’t been able to retest the level
yet. And it may not be able to do so for a while, either since the
Mayer Multiple would only equal 2.4 when the cryptocurrency’s price
rises to around the $168,500 level. Related Reading: XRP, Solana
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important level relevant to the Mayer Multiple that BTC did retest
during this cycle was the 0.8 line. Just like the 2.4 level serves
as a signal for potential overheated conditions, this line can
imply the coin may be reaching a bottom. Bitcoin successfully found
a rebound at the line earlier in the year, confirming that a
transition towards a bear market hadn’t taken place yet. It
now remains to be seen whether the asset would go on to retest the
top level next or if another plunge to this bottom level will
happen first. BTC Price Bitcoin slipped toward the $92,000 level on
Friday, but it seems the asset has made some recovery since then,
as it sits at $96,000 to kick off the new week. Featured image from
Dall-E, Glassnode.com, chart from TradingView.com
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