The Mayer Multiple indicates that Bitcoin has not yet entered the overbought zone. Here’s the threshold BTC must cross to reach this state.

Current Bitcoin Mayer Multiple Stands at 1.37

In a recent update on X, the analytics company Glassnode discussed the current movements in Bitcoin’s Mayer Multiple. This “Mayer Multiple” serves as a metric that evaluates the relationship between Bitcoin’s spot price and its 200-day moving average (MA).

According to Glassnode,

The 200DMA is a commonly used indicator for assessing the overarching bullish or bearish trend. The Mayer Multiple indicates how much BTC deviates from this long-term benchmark.

A Mayer Multiple above 1 suggests that the cryptocurrency’s price is currently higher than its 200-day MA, whereas a value below 1 indicates that it is trading below this crucial historical average.

Below is the chart provided by the analytics firm, illustrating the Bitcoin Mayer Multiple’s trend over recent years:

The chart shows that Bitcoin’s Mayer Multiple is currently at 1.37, which indicates a significant distance from its 200-day MA.

Glassnode’s chart also identifies three significant levels where Bitcoin’s spot price would achieve historically relevant Mayer Multiple values. The green zone (bottom) indicates a value of 0.8. Historically, readings below this threshold have pointed to oversold conditions. Currently, this level is around $60,000, implying that Bitcoin would need to fall below this level to enter the oversold range.

The red zone (top) is now set at $181,000. At this price, the Mayer Multiple would reach 2.4, suggesting that a value above this threshold typically indicates an overbought condition. Glassnode states, “While BTC is above its 200-day MA, it remains considerably distant from being overbought.”

For Bitcoin to enter the overbought territory this cycle, it must surpass the $181,000 threshold. Whether or not this level will be breached in the current cycle remains uncertain, as it is possible that Bitcoin could peak before reaching this point.

The final line on the graph, marked in blue, represents Bitcoin’s 200-day MA. This is where the Mayer Multiple equals 1. Last year, BTC dipped below this level during a consolidation phase.