An increasingly rare bull signal for investors comes after both the Mayer Multiple and the price of Bitcoin fell by 50% compared to November 2021. Bitcoin (BTC) has dropped low enough for one of its most well-known indicators to indicate the arrival of a once-in-a-lifetime long-term investment opportunity.
- The Mayer Multiple is currently at its lowest level since Bitcoin bounced at $29,000 in July of last year, as of Feb. 22.
- Mayer Multiple has dropped by 50% in three months.
- The Mayer Multiple, the latest in a series of metrics to echo the pit of the 2021 retracement on BTC/USD, currently measures 0.76, having halved since November’s all-time high of $69,000.
The Multiple compares the current price of Bitcoin to its 200-day moving average. Trace Mayer, its creator, believes that any reading below 2.4 represents an increasingly profitable trade for potential investors, and that the lower the score, the more likely a long-term buy-in will be effective.
To put things in perspective, the Multiple spends the majority of its time above 0.8 and has been higher than its current level 87 percent of the time since 2011.
The current drop in the metric did not go unnoticed, with several social media users bringing it to their attention last week.
Another anomaly can be found in November’s latest peak. Despite all-time high prices, the Multiple only reached the area around its historical median of 1.42, making the $69,000 top unusual in comparison to previous ones.
- Where can I find the deposits?
- Meanwhile, as various sources reported this week, existing investors are overwhelmingly choosing to hoard their BTC.
- Related: Bitcoin network activity is down 30% from highs as ‘tepid’ demand mimics the middle of 2019.
- Those who bought a year ago or earlier are increasing in number, even as prices begin to fall below their position at the same time in 2021.
📈 #Bitcoin $BTC Percent Supply Last Active 1+ Years just reached a 14-month high of 60.998%
Previous 14-month high of 60.993% was observed on 21 February 2022
View metric:https://t.co/1j255TMTVz pic.twitter.com/CLG26IZqK1
— glassnode alerts (@glassnodealerts) February 22, 2022
With retail investors showing little interest, commentators argue that the current situation is largely dictated by market makers.
“Taker Buy Volume (liquidity) is declining after peaking in May of last year. For a year, the anticipated movement did not occur, and liquidity decreased. New deposits continue to decline “Sunday was summarised by Mignolet, a contributor to on-chain analytics firm CryptoQuant’s Quicktake series.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.