Bitcoin Mayer Multiple

Bitcoin Mayer Multiple is a technical indicator for analyzing the state of the Bitcoin market, proposed by Trace Mayer. It evaluates the relative valuation level of the market by comparing the current price of Bitcoin with its 200-day Moving Average (200DMA).

Calculation method:

Mayer Multiple = Current Bitcoin Price / 200-Day Moving Average Price of Bitcoin

Explanation:

• Mayer Multiple > 1: Indicates that the current Bitcoin price is higher than its 200-day moving average, and the market may be overbought.
• Mayer Multiple < 1: Indicates that the current Bitcoin price is lower than its 200-day moving average, and the market may be oversold.
• Mayer Multiple ≈ 1: Indicates that the current Bitcoin price is close to its 200-day moving average, and the market may be in a relatively balanced state.

Historical reference:

• Historically, when the Mayer Multiple exceeds 2.4, it usually indicates that the market is overheated and a correction or bear market may occur.
• When the Mayer Multiple is below 0.8, the market may be undervalued and may be a good time to buy.

Application:

Investors can use the Mayer Multiple to judge the long-term trend of the Bitcoin market and potential buying or selling opportunities. However, it should be noted that any single indicator should not be used as the sole basis for investment decisions, and should be combined with other technical analysis tools and fundamental information for comprehensive judgment.

Notes:

The Mayer Multiple is an indicator based on historical data and cannot fully predict future price trends.

Investors should be cautious when using this indicator, especially when the market is volatile or has a large impact from external factors.

In short, the Mayer Multiple provides investors with a simple and effective tool to help them better understand the long-term trend and relative valuation level of the Bitcoin market.