Bitcoin Bounces Off Historic “Mayer Multiple” Bottom Zone
26 Juli 2022 - 9:00PM
NEWSBTC
Data shows the price of Bitcoin has broken above the 0.55 Mayer
Multiple level, below which the crypto has historically formed
bottoms. Bitcoin Has Now Left The Zone Below 0.55 Mayer Multiple As
per the latest weekly report from Glassnode, the BTC price has
escaped above 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. MAs are quite useful in studying long-term trends as
they eliminate any short-term fluctuations and smooth out the
curve. Related Reading | Bitcoin Puell Multiple Lifts Off From
Buy Zone, Bull Momentum To Follow? The Mayer Multiple basically
tells us how the latest value of the crypto has deviated from the
average during the past 200 days. Based on this, it becomes
possible to say whether the coin is currently overbought or
oversold. Now, here is a chart that shows the trend in the Bitcoin
“Mayer Multiple = 0.55” line during the last several years: Looks
like the price of the coin has crossed above the level recently |
Source: Glassnode's The Week Onchain - Week 30, 2022 As you can see
in the above graph, the the price of Bitcoin was under a Mayer
Multiple value of 0.55 until very recently. At this value of the
indicator, the BTC price is trading 45% lower than the 200-day
average. Historically, cyclical bottoms in the crypto’s price have
formed under this level. Related Reading | On-Chain Data:
Bitcoin Whales With 10k+ BTC Have Been Growing This zone with Mayer
Multiple values less than 0.55 has been rarely observed, with the
crypto closing under it on a total of 127 days out of the 4186 days
of trading life for the coin. This means that BTC has only spent 3%
of its history in this region. Currently, it seems like Bitcoin is
now shooting above the level after spending some time below it
recently. If the past is anything to go by, this could mean that a
bottom is now in for the crypto as the worst of the bear market may
be over. BTC Price At the time of writing, Bitcoin’s price floats
around $20.9k, down 5% in the last seven days. Over the past month,
the crypto has lost 2% in value. The below chart shows the trend in
the price of the coin over the last five days. The value of the
crypto seems to have been going down over the last few days |
Source: BTCUSD on TradingView Featured image from Kanchanara on
Unsplash.com, charts from TradingView.com, Glassnode.com
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