Analysis: Bitcoin Mayer Multiple Rarely Drops to Around 0.6, Potentially Signaling Bull Run

BlockBeats News, February 6th, Charles Edwards, founder of the Bitcoin and digital asset quant fund Capriole, stated that a bullish signal for Bitcoin is emerging. The Bitcoin Mayer Multiple has rarely dropped to around 0.6. Although further downside is still possible for Bitcoin's price, historically, this range has often corresponded to one of the most attractive buying opportunities in Bitcoin's history.

BlockBeats Note: The Bitcoin Mayer Multiple is a technical indicator used to analyze the Bitcoin market condition, proposed by Trace Mayer. It evaluates the market's relative valuation level by comparing Bitcoin's current price to its 200-day moving average (200DMA).

Historically, when the Mayer Multiple exceeds 2.4, it usually indicates an overheated market, potentially leading to a pullback or bear market. When the Mayer Multiple is below 0.8, the market may be undervalued, presenting a good buying opportunity.