Bitcoin’s potential breakout past the 200-day moving average (MA) could set it on a path towards reaching a significant market top, according to analyst Ali Martinez. In a recent analysis on X, Martinez highlighted the Mayer Multiple—an indicator that compares Bitcoin’s current price to its 200-day MA. This metric helps gauge whether Bitcoin is overbought or oversold.
Understanding the Mayer Multiple
The 200-day MA acts as a critical boundary between Bitcoin’s bullish and bearish trends. When Bitcoin’s price moves significantly above or below this line, it may indicate an overbought or oversold condition. A Mayer Multiple of 2.4 suggests the asset is becoming overheated, while a value of 0.8 signals it might soon rebound towards the 200-day MA.
Bitcoin’s Current Positioning
The shared chart reveals Bitcoin recently dipped below its 200-day MA at $86,900. Consequently, the Mayer Multiple has fallen below 1.0. The next support level could be $69,500, reflected by a Mayer Multiple of 0.8. However, a recent surge to $81,500, up over 6%, suggests Bitcoin might soon retest the 200-day MA.
Future Outlook
A successful move above this benchmark could set Bitcoin for a market top around $208,550, linked with a Mayer Multiple of 2.4. Although this level hasn’t been reached in the current Bitcoin cycle, past trends hint at a potential touch in the near future. However, market uncertainties, including tariffs, could influence these patterns.
Source: https://www.newsbtc.com
