Bitcoin (BTC) has caused a significant shift in bullish sentiment as a crucial BTC price indicator reaches its lowest level in eight months. On-Chain College, a popular analyst, noted in a post on X (formerly Twitter) on June 27 that classic patterns were repeating on the Bitcoin Mayer Multiple. Despite Bitcoin’s current price of $60,000, there is a noticeably bearish mood surrounding it due to a recent 17% dip. The Crypto Fear & Greed Index is also challenging lows not seen since 2024, and social media reflects little hope for a price turnaround among the average hodler. However, the Mayer Multiple suggests that a recovery may be on the horizon. The Mayer Multiple measures Bitcoin’s current price against its 200-day moving average and provides a buy or sell signal based on the resulting ratio. Its creator, Trace Mayer, initially considered a reading below 2.4 as a “buy” territory. According to data from on-chain analytics firm Glassnode, the Mayer Multiple measured 1.05 as of June 26. To reach the 2.4 level, the price of BTC would need to be approximately $140,000. BTC/USD last achieved a 2.4 reading in March 2021. Despite the low Mayer Multiple, it is important to note that extreme lows in this indicator do not always correspond to BTC price floors. In mid-2022, the indicator bottomed at around 0.47, but it took another four months before the price followed suit, marking the bottom of the bear market. The Bitcoin market is currently experiencing a debate about price strength, as 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 previously reached these levels in August 2023, which coincided with other bear market support trendlines being violated. Traders are drawing comparisons between the current situation and the consolidation period that occurred just below the key resistance level of $30,000. At the time of writing, BTC/USD was trading at around $60,700. As always, it is important for readers to conduct their own research and exercise caution when making investment decisions.
Bitcoin Mayer Multiple reaches lowest levels observed during 30K BTC price movement