An analyst has detailed how a breakout past the 200-day moving average (MA) could position Bitcoin for a peak around the upper limit of this indicator.
The Upper Band of the Bitcoin Mayer Multiple is Currently Positioned at $208,550
In a recent post on X, analyst Ali Martinez discussed Bitcoin’s Mayer Multiple. The “Mayer Multiple” signifies an indicator that measures the ratio between the BTC price and its 200-day MA. This metric can be interpreted as an indicator of how far the asset’s price is from the 200-day MA.
Historically, the 200-day MA has acted as a line of demarcation between bullish and bearish trends for the cryptocurrency. Thus, the distance of its price from this critical line can indicate potential oversold and overbought conditions.
Specifically, a Mayer Multiple value of 2.4 or higher typically indicates that the asset is becoming overextended. Conversely, a value of 0.8 or below may suggest the coin is poised for a rebound towards the 200-day MA.
Below is the chart shared by the analyst, illustrating the trend of Bitcoin’s 200-day MA along with lines marking the 2.4 and 0.8 Mayer Multiple levels over the last decade:
The chart illustrates that Bitcoin has recently fallen below the 200-day MA, which is located at $86,900. Consequently, the Mayer Multiple has dipped under the 1.0 threshold.
The next potential support level for the cryptocurrency might be found at $69,500, which corresponds to a Mayer Multiple value of 0.8.
BTC has experienced a notable surge in the past day, bringing its price closer to retesting the 200-day MA rather than falling back towards this support level. If the asset manages to retest this point and successfully break above it, Martinez has indicated that a market peak may be set around $208,550.
This figure aligns with the 2.4 Mayer Multiple level. Throughout the current cycle, Bitcoin has yet to reach this level. The chart shows that the bull run in the latter half of 2021 peaked far below this line, though the cryptocurrency lingered around it during the first half of the year.
Given historical trends, it is conceivable that the asset might reach this mark at least once before the cycle concludes. However, it remains to be seen whether this pattern will hold, especially with the looming uncertainties in the form of tariffs impacting the market.
BTC Price
Bitcoin has shown significant recovery over the last 24 hours, with its price climbing back to $81,500 following a rise of over 6%.
