Key points:
The Mayer Multiple indicates Bitcoin (BTC) is nearer to being “oversold” rather than “overbought,” even at record highs.
The indicator has remained stable in recent months as BTC struggles to achieve a significant breakout.
Current expectations do not support a blow-off top this month.
Bitcoin (BTC) remains “ice cold” at record highs, as a traditional BTC price metric suggests potential growth to $180,000.
Latest readings from the Mayer Multiple show that even at $120,000, BTC/USD is far from being overbought.
BTC price gauge still close to “oversold”
The absence of a blow-off top this bull run has drawn attention to onchain indicators, as market participants look for signs of change.
Nevertheless, the Mayer Multiple remains one of the indicators that favor continued bullish price movement.
“With Bitcoin at all-time highs and the Mayer Multiple being ice cold,” popular crypto quant analyst Frank A. Fetter remarked on its readings this week.
The Mayer Multiple examines the ratio of price to its 200-week moving average (MA). Readings above 2.4, indicating a price 2.4 times higher than the MA line, are seen as “overbought.”
Currently, the Multiple stands at 1.16, closer to the 0.8 “oversold” level than to any that indicate a bearish trend switch.
“I like the setup,” Fetter noted alongside an accompanying chart from onchain data source Checkonchain, which showed that for BTC/USD to hit the 2.4 mark, it would need to rise to $180,000.
The Multiple has generally cooled during this bull cycle compared to previous ones, peaking at 1.84 in March 2024, when BTC/USD was around $72,000, according to data from onchain analytics platform Glassnode.
In July of this year, analyst Axel Adler Jr. similarly described Multiple readings around 1.1 as a “good fuel reserve for a new upward impulse.”
BTC price breakout on hold
The timing for Bitcoin’s next significant movement continues to be debated.
Related: BTC October price breakout odds low: 5 things to know in Bitcoin this week
Present theories suggest that if a breakout doesn’t occur by year-end, the whole bull market may be at risk.
In the meantime, short-term forecasts predict erratic BTC price behavior throughout October, traditionally Bitcoin’s most prosperous month.
A 10% drop could still occur, pushing Bitcoin back to $114,000 or even its previous lower range.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should do their own research before making any choices.
