🔥🔥🔥 #bitcoin☀️ possibly undervalued as Mayer Multiple hits lowest since FTX collapse
A widely used Bitcoin valuation indicator is signaling that Bitcoin is currently undervalued, a situation not seen since the collapse of the cryptocurrency exchange FTX at the end of 2022.
Crypto education resource On-Chain College highlighted this in an August 7 post on X, stating, "If you believe the Bitcoin price will be higher in 6-12 months, then this is objectively a fantastic time to buy," referring to the Bitcoin Mayer Multiple chart.
This indicator compares Bitcoin's current price to its 200-day moving average, generating a ratio used as a buy or sell signal. The creator of the Mayer Multiple, Trace Mayer, considers a reading below 2.4 to be a "buy" signal.
According to #Glassnode , the Mayer Multiple was 0.88 on August 5 when Bitcoin dropped to $49,751. Following Bitcoin's rebound, the metric has risen slightly to 0.93, as per Bitcoin analytics firm BitBo data.
Analysts indicate that this means Bitcoin is still undervalued, as the Mayer Multiple has been higher 70% of the time since Bitcoin’s inception.
Despite this metric, some crypto analysts advise caution. On August 6, Markus Thielen, head of research at 10x Research, suggested that traders might want to wait for potential further dips in the near term. "To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s," Thielen told Cointelegraph, adding, "We would then expect another major rally attempt."
Meanwhile, the popular crypto trading account "wallstreetbets" noted the recent dip in Bitcoin's price, reiterating in an August 6 post on X, "Everyone gets Bitcoin at the price they deserve."
Pseudonymous crypto trader Mags added, "If the $60,000 support is lost on a closing basis, we may see a retest of the long-term trendline support before higher."
Source - cointelegraph.com
