Analysis: Bitcoin's "Mayer Multiple" Indicator Falls to 2022 Levels, Market May Still Have Downside Potential

Odaily According to data, as of February 9th, Bitcoin's "Mayer Multiple" indicator has dropped to 0.65, falling below the "oversold" level of 0.8. This marks the first occurrence since May 2022. This indicator provides buy/sell signals by comparing Bitcoin's current price to its 200-day moving average. Its founder, Trace Mayer, historically considered values below 2.4 as a "buy" zone. However, extreme lows do not always signal a price bottom. In mid-2022, the indicator fell to 0.47, yet BTC proceeded to drop approximately 58% over the following four months. This suggests the current BTC/USD pair could still retest the 200-week moving average. Furthermore, the Relative Strength Index (RSI) indicates Bitcoin has potential for further decline, with extreme scenarios possibly seeing a drop into the $40,000 range. (Cointelegraph)