Bitcoin Bounces Off Historic “Mayer Multiple” Bottom Zone

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 ...