Bitcoin may be undervalued as the Mayer Multiple registers the lowest since the FTX crash.
A widely used Bitcoin price indicator is currently glowing red, indicating that Bitcoin has not been priced this low since the fall of cryptocurrency exchange FTX in late 2022.
“If you believe the price of Bitcoin will be higher in the next 6-12 months, this is a very good time to buy personally,” crypto educational resource On-Chain College wrote in an Aug. 7 X post, referring to Bitcoin (BTC). Mayer Multiple Chart.
The indicator compares the current price of Bitcoin with its 200-day moving average, and the resulting ratio is used as a buy or sell signal. Creator Trace Meyers sees the reading below 2.4 “Buy” territory.
According to Glassnode, on August 5, the price of the Mayer Multiple dropped by 0.88 Bitcoin to $49,751. Since Bitcoin's recent rally, the ratio has risen, but barely, to 0.93, according to data from Bitcoin analysis firm Bitbo.
Analysts point out that this means the asset is still undervalued, as the Mayer Multiple has historically been “over 70% higher” in the time since bitcoin's inception.
Despite the scale, other crypto analysts advise Bitcoin traders to hold off for the time being in case there are more baits in the near future.
In the year On August 6, Markus Thielen, head of research at 10x Research, said: “We aim for the price of bitcoin to fall into the low 40,000s for the next bull market entry period.”
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“Then we expect another big test of support,” Thielen told Cointelegraph.
Meanwhile, the famous crypto trading account “Wallstreetbets” recently pointed out that the price of Bitcoin is rising. “Everybody will get Bitcoin for what it deserves,” he reiterated in an August 6 post.
If the $60,000 support is lost on the close, we could see long-term trend line support again before the high, crypto trader Mags added.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
