First In History: Bitcoin Mayer Multiple Records Lower Value Than Last Cycle’s Low
June 27 2022 - 3:00PM
NEWSBTC
The Bitcoin Mayer Multiple has recently sunk to a lower value than
the bottom of the previous cycle. This is the first time in the
history of the metric that such a trend has formed. Current Bitcoin
Cycle’s Mayer Multiple Low Is Deeper Than Last Cycle’s As per data
released from the analytics firm Glassnode, the current value of
the BTC Mayer Multiple is around 0.478. Before seeing what the
Bitcoin Mayer Multiple does, it’s best to look at a basic
explanation of a “moving average” first. A moving average (or MA in
short) is an analytical tool that averages out the value of any
quantity over a specific period of time. As its name implies, it
moves forward along with the quantity, and changes its value
accordingly. An MA can be taken over any timespan, whether that be
100 days, 72 hours, or even10 seconds. Related Reading | Why
Pain May Not Be Over For Bitcoin Holders Just Yet The bigger MAs
are usually quite useful for long-term analysis as they smooth out
any irrelevant short-term fluctuations. One popular moving average
for Bitcoin is the 200-day MA, which has historically indicated a
bear market whenever the price has went below it, and a bull market
whenever the price has crossed over it. Now, what the Mayer
Multiple does is measure how much the price of the crypto has
deviated from this 200-day MA. The below chart shows the trend in
the metric over the course of the history of Bitcoin: The value of
the metric seems to have been below 0.5 in recent weeks | Source:
Glassnode In the graph, the blue line is for the Bitcoin 200-day MA
and the green curve represents the points where the Mayer Multiple
would have a value of 0.5. As is apparent from the chart, the price
of the crypto has sunk below this 0.5 Mayer Multiple line only a
few times in the past. Related Reading | Bitcoin Coinbase
Premium Gap Approaches Zero, Selloff Ending? In fact, out of the
total 4163 trading days for the cryptocurrency so far, only 87 have
been spent below the green line, which comes out to be about only
2%. A pattern that the Mayer Multiple followed before this cycle
was that all successive cycles observed higher bottoms than the low
of the previous one. In the cycle so far, the metric has already
dipped to 0.478, which is less than last cycle’s bottom of about
0.511. This is a first occurrence in the history of Bitcoin. BTC
Price At the time of writing, Bitcoin’s price floats around $21.2k,
up 3% in the past week. Looks like the value of the crypto has
moved sideways recently | Source: BTCUSD on TradingView Featured
image from Maxim Hopman on Unsplash.com, charts from
TradingView.com, Glassnode.com
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