Bitcoin May Reach Price Top Above $168,500 According to Analyst
An analyst has indicated that Bitcoin may reach a price top exceeding $168,500 based on historical trends related to the Mayer Multiple.
Bitcoin Mayer Multiple Could Reveal Location Of Next Price Top
Analyst Ali Martinez discussed the potential BTC price peak in a new post on X, focusing on the Mayer Multiple, which measures the ratio between Bitcoin's price and its 200-day moving average (MA).
The 200-day MA is a critical level for BTC, often marking the boundary between bearish and bullish trends. The Mayer Multiple indicates the distance of the price from this MA, providing insight into market conditions.
A high Mayer Multiple suggests Bitcoin is trading significantly above the 200-day MA, indicating potential overbought conditions. Conversely, a low value could signal an upcoming bullish reversal for BTC.
Martinez provided a chart illustrating the Bitcoin Mayer Multiple as an oscillator throughout the cryptocurrency's history:
The graph shows that the Bitcoin Mayer Multiple is currently around halfway to the historically significant level of 2.4, where the price is 2.4 times the 200-day MA. Historical tops have formed when the metric surpassed this line, which Bitcoin has not yet retested in the current cycle.
To reach a Mayer Multiple of 2.4, Bitcoin's price would need to rise to approximately $168,500.
Another relevant level for the Mayer Multiple is the 0.8 line, which Bitcoin retested during this cycle. This level can indicate a potential bottom. Earlier in the year, Bitcoin rebounded at this line, suggesting that a transition to a bear market had not occurred. It remains uncertain whether Bitcoin will test the top level next or experience another decline to the bottom level first.
BTC Price
Bitcoin declined toward $92,000 on Friday but has since recovered, starting the new week at $96,000.
