Bitcoin's Mayer Multiple Indicator Falls Below Oversold Level

On February 10, it was reported that on-chain data indicates Bitcoin's 'Mayer Multiple' has dropped to 0.65 as of February 9, falling below the 'oversold' threshold of 0.8 for the first time since May 2022. According to PANews, this indicator, which compares Bitcoin's current price to its 200-day moving average, is used to provide buy and sell signals. Its creator, Trace Mayer, has previously considered a value below 2.4 as a 'buy' zone. However, an extremely low level does not always signify a price bottom. In mid-2022, the indicator fell to 0.47, yet Bitcoin's price subsequently declined by approximately 58% over the following four months. This suggests that the current BTC/USD rate may still retest the 200-week moving average. Additionally, the Relative Strength Index (RSI) indicates that Bitcoin could experience further declines, potentially even dropping to the $40,000 range under extreme conditions.