Main Takeaways:
The Mayer Multiple for Bitcoin indicates that BTC is more likely to be “oversold” than “overbought,” even during soaring price levels.
This indicator has shown little movement in recent months as BTC’s price grapples with securing a definitive breakout.
Current expectations do not support the possibility of a blow-off top this month.
Bitcoin (BTC) is considered “ice cold” at its all-time highs, according to a traditional Bitcoin price metric which signals potential growth towards $180,000.
Recent Mayer Multiple readings indicate that even at $120,000, BTC/USD is far from being overheated.
BTC Price Indicator Remains Near “Oversold”
The absence of a blow-off top in this bull cycle has brought attention to on-chain indicators as traders look for signs of potential shifts.
The Mayer Multiple is one of the indicators that suggest a bullish price continuation.
“Bitcoin is reaching all-time highs while the Mayer Multiple remains ice cold,” crypto quant analyst Frank A. Fetter, whose X account references a renowned economist, noted in his analysis this week.
The Mayer Multiple assesses the ratio of Bitcoin’s price to its 200-week moving average (MA). Readings exceeding 2.4, indicating prices 2.4 times greater than the MA trend line, are seen as “overbought.”
At present, the Multiple rests at 1.16, closer to the “oversold” threshold of 0.8 rather than levels typically associated with a bearish trend shift.
“I like the setup,” Fetter remarked, sharing a chart from on-chain data platform Checkonchain, which illustrated that for BTC/USD to hit the 2.4 mark, it would require a rise to $180,000.
This cycle has seen the Multiple decrease overall compared to previous bull cycles, peaking at 1.84 in March 2024 when BTC/USD was around $72,000, according to on-chain analytics service Glassnode.
BTC Price Surge on Hold
The timing for Bitcoin’s next significant price move is still under discussion.
Related: BTC October price breakout prospects are low: 5 things to know about Bitcoin this week
Current theories suggest that if a breakout does not happen by year-end, it could jeopardize the entire bull market.
In the meantime, short-term views anticipate volatile price movements for BTC throughout October, historically Bitcoin’s most prosperous month.
A potential 10% dip remains on the table, which could pull Bitcoin back to $114,000 or even its lower range.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to conduct their own research before proceeding.
