Bitcoin Has Room to Hit $180,000: Mayer Multiple Analysis

Key points:

• Bitcoin’s Mayer Multiple suggests that BTC is closer to “oversold” than “overbought,” even at its all-time highs.

• The gauge has barely moved in recent months as BTC price struggled to make a decisive breakout.

• Expectations are no longer in favor of a sudden rise this month.

Bitcoin (BTC) is “very cold” at all-time highs, according to a classic Bitcoin price gauge that shows room to reach $180,000.

The latest readings from Mayer Multiple revealed that even at $120,000, the BTC/USD price was not high at all.

BTC Price Gauge Still Close to “Oversold”

Bitcoin’s lack of a blowout top in this bull market has put onchain indicators in focus as market participants look for signs of change.

The Mayer Multiple is among the indicators that strongly suggest a continuation of bullish price.

“Bitcoin is at all-time highs, and Mayer multiples are very cold,” said cryptocurrency quantitative analyst Frank A. Vitter, whose X account is named after a famous economist, Comment In his readings this week.

The Mayer multiplier measures the ratio of price to its 200-week moving average (MA). Readings above 2.4, which reflect a price 2.4 times higher than the moving trend line, indicate “overbought” conditions.

Currently, the multiple is at 1.16, which is closer to the 0.8 “oversold” level than that which typically indicates a downward trend change.

“I love the setup,” Fetter added alongside a chart from onchain data source Checkonchain. The chart indicated that for BTC/USD to reach the 2.4 mark, it would need to rise to $180,000.

The multiplier has moderated this bull cycle broadly, compared to others before it, reaching a maximum level of 1.84 in March 2024. At the time, BTC/USD was trading at around $72,000, according to data from analytics platform onchain. Vitreous node.

In July of this year, another cryptocurrency analyst, Axel Adler Jr., described multiple readings near 1.1 as “a good fuel reserve for a new bullish impulse.”

BTC price breakout pending

The timing of Bitcoin’s next volatile move remains a topic of debate.

Related to: BTC October Price Breakout Odds Low: 5 Things to Know in Bitcoin This Week

Current thesis suggests that unless a breakout occurs by the end of the year, the entire bull market could be in danger.

Meanwhile, short-term perspectives see volatile Bitcoin price action characterizing October, traditionally the most successful month for Bitcoin.

A 10% drop is still possible, taking Bitcoin back to $114,000 or even the lows of its range.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.