Bitcoin Bounces Off Historic “Mayer Multiple” Bottom Zone

Data exhibits the worth of Bitcoin has damaged above the 0.55 Mayer Multiple stage, beneath which the crypto has traditionally shaped bottoms.

Bitcoin Has Now Left The Zone Below 0.55 Mayer Multiple

As per the newest weekly report from Glassnode, the BTC value has escaped above the Mayer Multiple backside zone.

The “Mayer Multiple” is an indicator that measures the ratio between the present Bitcoin value and the 200-day transferring common of the identical.

A “transferring common” (or MA briefly) is an analytical device that takes the typical of any amount over a specified interval, and as its title implies, it strikes with the amount and modifications its worth accordingly.

MAs are fairly helpful in learning long-term traits as they eradicate any short-term fluctuations and clean out the curve.

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The Mayer Multiple principally tells us how the newest worth of the crypto has deviated from the typical throughout the previous 200 days. Based on this, it turns into doable to say whether or not the coin is presently overbought or oversold.

Now, here’s a chart that exhibits the development within the Bitcoin “Mayer Multiple = 0.55” line over the last a number of years:

Looks like the worth of the coin has crossed above the extent just lately | Source: Glassnode's The Week Onchain - Week 30, 2022

As you possibly can see within the above graph, the the worth of Bitcoin was underneath a Mayer Multiple worth of 0.55 till very just lately.

At this worth of the indicator, the BTC value is buying and selling 45% decrease than the 200-day common. Historically, cyclical bottoms within the crypto’s value have shaped underneath this stage.

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This zone with Mayer Multiple values lower than 0.55 has been hardly ever noticed, with the crypto closing underneath it on a complete of 127 days out of the 4186 days of buying and selling life for the coin. This signifies that BTC has solely spent 3% of its historical past on this area.

Currently, it looks like Bitcoin is now taking pictures above the extent after spending a while beneath it just lately. If the previous is something to go by, this might imply {that a} backside is now in for the crypto because the worst of the bear market could also be over.

BTC Price

At the time of writing, Bitcoin’s value floats round $20.9k, down 5% within the final seven days. Over the previous month, the crypto has misplaced 2% in worth.

The beneath chart exhibits the development within the value of the coin over the past 5 days.

Bitcoin Price Chart

The worth of the crypto appears to have been taking place over the previous couple of days | Source: BTCUSD on TradingView
Featured picture from Kanchanara on, charts from,

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