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In the cryptocurrency market, notable developments regarding Bitcoin continue to make headlines. A widely used Bitcoin valuation indicator is currently flashing red, indicating that Bitcoin has not been this low since the bankruptcy process of the cryptocurrency exchange FTX at the end of 2022.
What Is Happening with Bitcoin?
The crypto education source On-Chain College referred to the Bitcoin Mayer Multiple graph in its August 7 X post and shared the following statement:
“If you believe Bitcoin’s price will be higher in 6-12 months, then it’s objectively a great time to buy.”
The indicator compares Bitcoin’s current price to its 200-day moving average, and the resulting ratio is used as a buy or sell signal. Its creator, Trace Mayer, considers a reading below 2.4 as a buying zone.
According to data from the Blockchain data analysis platform Glassnode, on August 5, the Mayer Multiple was at 0.88 when Bitcoin fell to $49,751. Since Bitcoin’s recent upward momentum, data from the Bitcoin analytics firm BitBo shows that the value has only risen to 0.93. Analysts suggest this means the asset is still undervalued, with the Mayer Multiple historically being 70% higher since Bitcoin’s inception.
Details on the Subject
Despite the data obtained, other crypto analysts suggest Bitcoin investors should wait for now in case of further short-term declines. On August 6, Markus Thielen, Head of Research at 10x Research, shared the following statement:
“We aim for Bitcoin prices to fall below the 40,000s to ideally time the next bull market entry. Then we would expect another major recovery attempt.”
Meanwhile, the popular crypto trading account wallstreetbets pointed to the recent decline in Bitcoin prices, reiterating on August 6 that everyone buys Bitcoin at the price they deserve. Another popular cryptocurrency investor, Mags, shared the following statement on the subject:
“If the $60,000 support is lost on a closing basis, we might see a retest of the long-term trendline support before moving to higher levels.”
