Crypto: Bitcoin's Mayer Multiple Hits 2022 Levels: Where Is BTC Price Bottom?

The Bitcoin Mayer Multiple reached 0.65, echoing the deep bear market conditions of 2022 and sparking debate on whether BTC's real bottom lies at $50,000 or lower.

Bitcoin (BTC) has entered the “darkest days” of its bear market correction, based on a classic BTC price indicator hitting near four-year lows.

Bitcoin Mayer Multiple fell to 0.65, matching deep bear market lows in May 2022.

A repeat of 2022 would see BTC drop further to as low as $40,000.

Bitcoin’s 45% crash from its $126,000 peak has placed onchain indicators in focus as market participants search for where BTC price is likely to bottom.

The Mayer Multiple is among the indicators suggesting that a bottom could be reached soon.

In a post on X on Tuesday, analyst On-Chain College said that the Bitcoin Mayer Multiple score had dropped to levels “usually reserved for deep bear market corrections.”

Related: BTC traders wait for $50K bottom: Five things to know in Bitcoin this week

The indicator measures Bitcoin’s current price against its 200-day moving average, and the resulting ratio is used as a buy or sell signal. Its creator, Trace Mayer, originally gave a reading of below 2.4 as “buy” territory, the red line in the chart below.

Data from onchain analytics firm Glassnode shows that as of Monday, the Mayer Multiple measured 0.65, below its “oversold” 0.8 level (green band), a reading last seen in May 2022.

Source: CoinTelegraph