In the cryptocurrency market, especially with Bitcoin, there are several tools that investors use to analyze prices and identify good opportunities to buy or sell. One of these tools is the Mayer Multiple. In this article, we will explain this concept to you in a simple way so that you can understand it and use it in your investments.
What is Mayer Multiple?
Mayer Multiple is an indicator used by cryptocurrency traders to determine whether Bitcoin is overvalued or undervalued compared to its historical average price. Simply put, it’s a tool that helps you know when it’s a good time to buy or sell.
How is Mayer Multiple calculated?
To calculate the Mayer Multiple, we divide the current price of Bitcoin by the simple moving average (SMA) of the Bitcoin price over the past 200 days. The formula is as follows:

What does Mayer Multiple mean?
• Mayer Multiple less than 1: This means that the price of Bitcoin is below the historical average. This may indicate that the market is in a correction or that the price of Bitcoin is low, which may be a buying opportunity.
• Mayer Multiple between 1 and 2: This is considered a normal and stable range. A price in this range means that Bitcoin is in a balanced state in terms of value.
• Mayer Multiple greater than 2: Indicates that Bitcoin may be overvalued or in a price “bubble.” This means that the market may be in a saturation phase, which may prompt investors to sell.
Why use Mayer Multiple?
Investors use this indicator to help them make investment decisions. For example:
• If the Mayer Multiple is less than 1, investors may consider the price of Bitcoin to be low, and therefore it is a good time to buy.
• If the Mayer Multiple is above 2, it may be a good time to sell because the market may be overvalued.
How does Mayer Multiple help in decision making?
Simply put, this indicator helps investors know whether the current price of Bitcoin is a “buying opportunity” or a “selling opportunity.” Of course, Mayer Multiple is not the only indicator that can be used alone, but should be combined with other analyses to form a complete picture of the market.
Conclusion:
Mayer Multiple is a useful tool for understanding the Bitcoin market and analyzing whether the current price is fair or overvalued. It helps investors make informed decisions based on past market movements. If you are new to the cryptocurrency market, you can use Mayer Multiple as one of the tools to better understand the market, but make sure to learn and research continuously to ensure you make sound investment decisions.
