Bitcoin May Have Already Hit Bottom, According to Mayer Multiple Indicator
The Mayer Multiple indicator has successfully predicted the past two Bitcoin bear market bottoms. As the market begins to regain its footing, the indicator has begun to paint a similar picture.
Developed by Trace Mayer, the Mayer Multiple (MM) indicator is a value found by taking the current price of Bitcoin (BTC) divided by the 200-day moving average (MA).
In this case, MM values slipping and staying below 1.0 have coincided with the major elongated bear market periods in Bitcoin’s history. Conversely, breaking above the 1.0 value has led to the beginning stages of significant price increases.
CryptoKea@CryptoKeaThe @TraceMayer Mayer Multiple and its move back above 1.0 might have just indicated the bottom of this bear market, just as it successfully indicated the two prior bear market bottoms.#BTC #Bitcoin #Crypto
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Following Bitcoin’s explosive bull market run at the end of 2017, the MM fell sharply with the price, reaching a 2018 low of 0.5 in mid-December. Last week was the first time the MM again broke above 1.0 for the first time since May of 2018, and at the time of writing is sitting just above 1.1.
This bodes quite well for Bitcoin, considering the past two breakouts which occurred in early 2012 and mid-2015.
Using the Mayer Multiple scale, periods where the value has been below 2.4 have proven to be the best times for accumulation with the potential for maximum profitability and value.
2018 was the worst year on record for the cryptocurrency market, losing 80 percent of its total market cap from the highs set the year before. 2019 will most likely be a recovery year for Bitcoin and the broader cryptocurrency market.
Investors should always be wary about using past movements and patterns to try and predict the future. Bitcoin has fought on the proving grounds for more than a decade now, and the price is becoming more and more based on fundamentals than speculation.
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