Bitcoin (BTC) has caused a significant shift in bullish sentiment due to a key BTC price indicator reaching its lowest point in eight months. On-Chain College, a popular analyst, highlighted the repetition of classic patterns on the Bitcoin Mayer Multiple in a post on X (formerly Twitter) on June 27.
Despite Bitcoin still being valued at $60,000, there is a noticeably bearish sentiment following a 17% dip. The Crypto Fear & Greed Index is currently at its lowest point since 2024, and there is little optimism among hodlers for a price turnaround. However, the Mayer Multiple suggests that a recovery could be on the horizon.
The Mayer Multiple measures Bitcoin’s current price against its 200-day moving average, and the resulting ratio is used as a signal to buy or sell. Its creator, Trace Mayer, originally considered a reading below 2.4 as a signal to buy. Data from Glassnode, an on-chain analytics firm, shows that as of June 26, the Mayer Multiple stood at 1.05.
For the Mayer Multiple to reach the 2.4 level, the price would need to be nearly $140,000. The last time BTC/USD achieved a 2.4 reading was in March 2021. On-Chain College noted that despite the current price of $60.9K, the Bitcoin Mayer Multiple is now at a level not seen since October 2023 when it was at $29.9K.
It is important to note that extreme lows in the Mayer Multiple do not always correspond to Bitcoin price floors. In mid-2022, the indicator hit a low of around 0.47, but it took another four months before the price reached a similar low point, marking the bottom of the bear market.
As the debate around price strength continues, 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 is at levels seen in August 2023 when other bull market support trendlines were violated.
At the time of writing, BTC/USD is trading at around $60,700. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.