Recent data indicates that the Bitcoin Mayer Multiple has dropped to the lower end of its range, signaling a potential slowdown in Bitcoin’s momentum. According to on-chain analytics firm Glassnode, this metric is now testing its long-term lower boundary.
The Mayer Multiple measures the ratio between Bitcoin’s current price and its 200-day moving average. In technical analysis, the 200-day moving average often distinguishes between long-term bullish and bearish trends. When Bitcoin trades above this line, it’s generally seen as bullish, while trading below it may indicate a downturn. The Mayer Multiple shows how far Bitcoin’s price deviates from this key level, with significant deviations above suggesting overvaluation and those below potentially signaling a buying opportunity.
Glassnode’s chart reveals that Bitcoin’s recent decline has pushed its price below the 200-day moving average, bringing the Mayer Multiple close to 0.8. This level has historically served as the lower limit of the indicator’s range, last breached during the 2022 bear market. Glassnode notes that such periods often coincide with price consolidation and increased demand from value-focused investors.
Bitcoin is also testing other crucial on-chain support levels. It has recently fallen below the Active Realized Price of $88,600, which reflects the average cost basis for active market participants. The next key level is the True Market Mean at $82,000, another cost-based metric for the Bitcoin network. A break below both these levels could confirm a deeper bearish trend, something not seen since May 2022.
Currently, Bitcoin is trading around $87,200, down 13% over the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about Bitcoins Mayer Multiple dropping to its lower limit designed to be clear and helpful for all levels of understanding
Beginner Definition Questions
1 What is the Mayer Multiple
The Mayer Multiple is a simple metric used to gauge whether Bitcoin is expensive or cheap Its calculated by dividing Bitcoins current price by its 200day moving average
2 What does it mean that it has hit its lower limit
It means the metric has fallen into a zone that has historically signaled Bitcoin is deeply undervalued Its a rare occurrence that suggests the current price is very low compared to its longterm average
3 Is this a guaranteed signal to buy Bitcoin
No it is not a guarantee Its a strong historical indicator that Bitcoin is in a lowprice zone but the price could still go lower or stay low for a while It should be one piece of your research not your only signal
Implications What Happens Now Questions
4 What typically happens after the Mayer Multiple hits this low level
Historically buying Bitcoin when the Mayer Multiple is this low has led to significant profits over the long term However it does not mean an immediate price rebound is certain
5 Does this mean the price will go up immediately
Not necessarily While it often marks a major bottom area the price can remain volatile and trade sideways or even dip further before beginning a sustained recovery Patience is key
6 Is the bear market officially over now
This is a strong signal that we are likely in the later stages of a bear market but it doesnt officially call the bottom It indicates that the riskreward ratio for longterm investors is very favorable
7 Should I invest all my money right now
Absolutely not This is a signal to consider starting or averaging into a position The best practice is to use a strategy like DollarCost Averaging to invest a fixed amount regularly which reduces risk
Advanced Strategic Questions
8 How is the lower limit defined
The lower limit isnt a single number but a range typically considered to be a Mayer Multiple value below 0