Originally published on: August 08, 2024
Bitcoin may be presenting a great buying opportunity as the Mayer Multiple hits its lowest level since the collapse of FTX. The Mayer Multiple, a widely used Bitcoin valuation indicator, compares Bitcoin’s current price to its 200-day moving average. When this ratio falls below 2.4, it is considered a signal to buy.
According to Glassnode, the Mayer Multiple hit a value of 0.88 on August 5 when Bitcoin dropped to $49,751. Despite a slight rebound, the metric remains low at 0.93, indicating that Bitcoin is possibly undervalued. This has only happened 30% of the time since Bitcoin’s inception.
While some analysts recommend waiting for further dips in Bitcoin’s price, others see this as an ideal time to enter the market. Markus Thielen of 10x Research suggests waiting for Bitcoin prices to fall into the low $40,000s before expecting another rally attempt.
In the midst of price fluctuations, the crypto community remains divided on the future of Bitcoin. “Wallstreetbets” highlights the recent dip in Bitcoin’s price, emphasizing that everyone gets Bitcoin at the price they deserve. Pseudonymous trader Mags warns of a potential retest of long-term support if the $60,000 level is lost.
As with any investment, it’s important to conduct your own research and assess the risks involved. Stay informed with critical insights and investment opportunities by subscribing to the Markets Outlook newsletter for weekly updates.