Indicator gives extremely bullish signal for Bitcoin

Bitcoin is struggling to stay above the price of 60,000 dollars. Although that is a shame, according to some analysts there are also positive things to report. On Chain College sees namely that there has been a “healthy reset” for many indicators. For example, he points to the Mayer Multiple, which is at its lowest level in 8 months.

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Lowest level since October 2023

We must not forget that the Bitcoin price is still coming in at 60,000 dollars. No one would have dared to dream that after the huge price drop we saw at the end of 2022 with the implosion of Sam Bankman-Fried’s FTX.

Despite that, sentiment is now extremely bearish. However, if we look at the Mayer Multiple, salvation might be near. The Mayer Multiple measures the current Bitcoin price against the 200-day moving average.

The resulting ratio between the two is used as a buy or sell signal. Trace Mayer, the brains behind the indicator, says that a score below 2.4 means Bitcoin is a “buy.”

The Mayer Multiple is currently at 1.05 and to reach the score of 2.4, the Bitcoin price must rise to $140,000. “The Mayer Multiple is now at a level we have not seen since October 2023, despite the fact that the price is now at $60,900 and we had to make do with $29,900 at the time,” said On-Chain College.

A healthy reset for Bitcoin

In this regard, On-Chain College speaks of a “healthy reset” of sentiment regarding the digital currency.

It is indeed interesting that everyone is now bearish, while the Bitcoin price is twice as high as in October 2023. This shows how quickly people get used to certain prices and that the perception of expensive/cheap can also change.

10 years ago, a Bitcoin price of $60,000 was completely unthinkable, while now it makes people anxious. Bitcoin itself has not changed in the meantime, only people’s views on how much the digital currency should be worth.

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