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

Odaily News According to data, as of February 9th, Bitcoin's "Mayer Multiple" indicator has fallen to 0.65, 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, once considered values below 2.4 as a "buy" zone. However, extreme lows do not always signify a price bottom. In mid-2022, this indicator dropped to 0.47, yet BTC fell approximately another 58% in 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 could potentially decline further, possibly even probing the $40,000 range in extreme scenarios. (Cointelegraph)