Bitcoin and the cryptocurrency world, which are considered important indicators, the Mayer Multiple metric is currently at the level of 1.47. The Mayer Multiple metric calculates by taking the ratio of Bitcoin’s current price to its 200-day moving average. If the figure is below 2.4, it indicates that the value of BTC is below what it should be. Above 2.4, on the other hand, points to a buying frenzy for BTC.
Glassnode’s latest analysis reveals a notable development in the Mayer Multiple indicator. The current value, which is at 1.47, is close to the critical level of 1.5, a historical resistance point especially observed during previous cycles, including the all-time high (ATH) in November 2021.
Glassnode’s insights shed light on the historical context of the Mayer Multiple indicator, emphasizing the tendency to encounter resistance around the level of 1.5 in past market cycles. This numerical threshold has played a significant role in shaping market dynamics, often influencing trends and outcomes.
As an interesting aspect of the analysis, Glassnode highlights the time elapsed since the Mayer Multiple crossed this critical level. The indicator’s current value points to approximately 33.5 months since surpassing the 1.5 threshold. This extended break period stands out as the longest since the 2013-16 bear market and points to potential nuances in the severity of the recent 2021-22 bear market.
Glassnode’s data-driven analysis serves as a valuable tool for cryptocurrency enthusiasts and investors by enabling a nuanced understanding of market trends. By highlighting the Mayer Multiple and its historical significance, Glassnode offers insights that can influence strategic decisions in the ever-evolving environment of the crypto market.
As the Mayer Multiple metric approaches the known resistance level, market participants are advised to closely monitor their behavior. The historical context provided by Glassnode underscores the potential impact of this numerical threshold on market movements.
On the other hand, breaking the level of 1.5 could also be interpreted as a declaration of a bull market. Every approach to 2.4 will indicate buying, and beyond this level, the enthusiasm’s journey to the peak will begin.
