Bitcoin Mayer Multiple recently dropped to a lower value than the low of the previous cycle. This is the first time in the history of scale that such a trend has formed.
Meyer’s Multiple Low for the Current Bitcoin Cycle Deeper Than the Last
According to data from the analytics company glassthe current value of BTC Mayer Multiple is around 0.478.
Before seeing what Bitcoin Mayer Multiple does, it is best to take a look at a basic explanation of “moving average“First.
A moving average (or MA for short) is an analytical tool that measures the average value of any quantity over a specified period of time.
As its name suggests, it moves forward with the quantity and changes its value accordingly. The moving average can be taken in any time range, be it 100 days, 72 hours or even 10 seconds.
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Larger moving averages are usually very useful for long-term analysis as they smooth out any irrelevant short-term fluctuations.
One of the popular moving averages for Bitcoin is the 200-day moving average, which historically has indicated a bear market whenever the price falls below, and a bull market whenever the price exceeds.
Now, what is a file Meyer multiple It measures how much the cryptocurrency price deviates from the 200-day moving average.
The chart below shows the trend in the scale over the history of Bitcoin:
The value of the metric seems to have been below 0.5 in recent weeks | Source: Glassnode
In the chart, the blue line represents the 200-day moving average of Bitcoin and the green curve represents the points where the Mayer multiplier is 0.5.
As can be seen from the chart, the price of the cryptocurrency has fallen below the 0.5 Mayer multi-line only a few times in the past.
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In fact, out of a total of 4,163 cryptocurrency trading days so far, only 87 have been spent below the green line, which is only about 2%.
The pattern followed by the Mayer multiplier prior to this cycle was that all successive cycles noticed higher lows than the previous cycle low.
In the session so far, the scale has already fallen to 0.478, which is lower than the last session’s low of around 0.511. This is the first event in the history of Bitcoin.
At the time of writing this report, Bitcoin price It is floating 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