July 23, 2024
Bitcoin at $61,149 as Mayer Multiple Hits Lows Last Seen at $30K
Bitcoin price today

Bitcoin at $61,149 as Mayer Multiple Hits Lows Last Seen at $30K

Thursday, June 27, 2024: Bitcoin Price Today is $61,149. This downturn has been viewed as a “healthy reset” for bullish sentiment, largely due to a key BTC price indicator reaching its lowest point in eight months. On June 27, popular analyst On-Chain College noted on X (formerly Twitter) that classic patterns reappeared on the Bitcoin Mayer Multiple.

Bitcoin Mayer Multiple. Source: On-Chain College

Market Sentiment and Indicators

Despite Bitcoin maintaining a price of around $60,000, there has been a notably bearish mood following its recent 17% dip. The Crypto Fear & Greed Index, as reported by sources, is challenging the lowest levels of 2024. Social media platforms show little optimism, with the average hodler not expecting a price rebound soon. However, the Mayer Multiple indicator suggests a potential recovery could be on the horizon.

Bitcoin Mayer Multiple. Source: Glassnode

This indicator measures Bitcoin’s current price against its 200-day moving average, and the resulting ratio serves as a buy or sell signal. According to its creator, Trace Mayer, a reading below 2.4 falls into the “buy” territory. As of June 26, data from on-chain analytics firm Glassnode indicated that the Mayer Multiple was at 1.05.

Potential for Recovery

To reach the 2.4 level on the Mayer Multiple, Bitcoin’s price would need to soar to nearly $140,000. The last time BTC/USD reached a 2.4 reading was in March 2021. On-Chain College highlighted that “The Bitcoin Mayer Multiple is now at a level not seen since October 2023, despite price at $60.9K now vs. $29.9K back in October.”

“A healthy reset of sentiment to shift back bearish while being at twice the price.”

It’s important to note that extreme lows in the Mayer Multiple do not always align with BTC price floors. For example, in mid-2022, the indicator bottomed out at around 0.47, but it took another four months for the price to hit its lowest point and mark the end of the bear market.

June has sparked considerable debate about Bitcoin’s price strength. The Mayer Multiple is not the only “buy” signal currently valid. Bitcoin’s relative strength index (RSI) has also entered “oversold” territory across multiple timeframes. On the daily chart, RSI levels this week were last seen in August 2023, a period during which other bull market support trendlines, such as the short-term holder cost basis, were also being violated.

“The last time the RSI was this low, Bitcoin had just consolidated for 3+ months, just below the key resistance @ 30k,” noted popular trader Jelle in a recent X post. At the time of writing, BTC/USD was trading at around $60,700, according to data from TradingView.

BTC/USD 1-day chart with RSI data. Source: TradingView

Image by fabrikasimf on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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