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

According to data from Odaily, as of February 9th, Bitcoin's "Mayer Multiple" indicator has dropped to 0.65, falling below the "oversold" level of 0.8. This is 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, previously 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 price dropped approximately 58% further over the following four months. This suggests the current BTC/USD pair may still retest the 200-week moving average. Furthermore, the Relative Strength Index (RSI) indicates Bitcoin could potentially decline further, with extreme scenarios possibly seeing a drop into the $40,000 range. (Cointelegraph)