Биткоин на пути к новым вершинам: потенциал роста при Mayer Multiple 1,14 Translation: Bitcoin on the Path to New Heights: Growth Potential with Mayer Multiple at 1.14

The cryptocurrency market is still far from reaching overbought levels, indicating that there is potential for the rally to continue. This viewpoint was shared by analyst Frank Fetter, who referenced data from the technical indicator Mayer Multiple.

«Bitcoin is near its ATH, and the Mayer Multiple is chillingly low. I like this setup,» the analyst remarked.

This metric reveals the gaps between the 200-day simple moving average (MA). It helps identify speculative bubbles and periods of complete seller exhaustion, signaling a long-term trend reversal upwards.

When the indicator is above 1, it signifies that Bitcoin’s price is above the 200-day moving average. Conversely, when it is below 1, the price is under the MA of 200.

Historically, a Mayer Multiple exceeding 2.4 indicates the development of a speculative bubble. The creator of the metric and host of the Bitcoin Knowledge podcast, Trace Mayer, believes that investors achieve the best long-term results when the main accumulation period for cryptocurrency occurs at values below 2.4.

At the time of writing, the Mayer Multiple stands at 1.14. Meanwhile, digital gold is trading around $121,360, which is 3.6% lower than the ATH reached on October 6 (according to CoinGecko).

On the chart attached to Fetter’s post, a level of $180,000 is marked, corresponding to the «speculative» target of 2.4.

The indicator’s values are notably lower compared to previous market phases. During the current cycle, it peaked at 1.84 in March 2024 when Bitcoin was trading around $72,000.

In July, CryptoQuant analyst Axel Adler Jr. noted that Mayer Multiple values near 1.1 could be viewed as a type of «fuel reserve» for a new growth impulse.

Glassnode analysts pointed out that Bitcoin is trading above the acquisition cost for short-term holders (STH).

«The rally remains below the overheating zone (+1 STD). This indicates a strong momentum remains, but also highlights an approach to short-term risk levels,» the researchers explained.

They also noted a «moderate» inclination among investors to take profits amid rising realized profits.

«There are currently no signs of a price peak, unlike in December 2021, when the growth began to slow down,» the experts shared in their observations.