๐ IS NOW THE TIME TO BUY THE DIP? ๐
The Bitcoin Mayer Multiple, a classic BTC price indicator, has hit an eight-month low, suggesting a potential "buy the dip" opportunity.
Bitcoin is currently trading around $61,000, yet the sentiment among holders is notably bearish due to a recent 17% dip. Despite the drop, the Mayer Multiple is showing signs that could indicate an impending recovery.
The Mayer Multiple measures Bitcoin's price against its 200-day moving average. Historically, a reading below 2.4 has been considered a "buy" signal. On June 26, the Mayer Multiple hit 1.05, its lowest since October 2023, when Bitcoin was at $29,900.
๐ Analyst Perspective:
Popular analyst On-Chain College highlighted this in a recent X (formerly Twitter) post, stating:
โThe Bitcoin Mayer Multiple is now at a level not seen since October 2023, despite price at $60.9K now vs. $29.9K back in October.
๐ Historical Context:
It's important to note that while the Mayer Multiple hitting extreme lows can suggest a recovery, it doesn't always correspond immediately to price floors. For example, in mid-2022, the indicator bottomed at 0.47, but Bitcoinโs price didn't hit its lowest until four months later.
Also, the Crypto Fear & Greed Index reflects heightened fear, challenging 2024 lows. However, Bitcoin's relative strength index (RSI) has also dipped into "oversold" territory, suggesting a potential rebound.
๐ก Conclusion:
With the Mayer Multiple and RSI both indicating potential bullish trends despite the current bearish sentiment, the market might be setting up for a rebound...
...BUT stay alert as the US and German governments unloaded HUNDREDS OF MILLIONS worth of bitcoin to various exchanges and may crash the market if they start selling off.
There's 2 sides here, a bullish and a bearish one, yet nobody knows what's gonna happen next....
Stay informed with @Professor Mende - Founder of BONUZ Project - in Dubai UAE and drop a comment below!