Bitcoin Breakout Above This Level Could Set Stage For $208,550 Top, Analyst Says

Keshav Verma

2 months ago

2 mins read

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An analyst has explained how a break beyond the 200-day moving average (MA) might put Bitcoin on the path to a top around the upper band of this indicator.

Bitcoin Mayer Multiple Currently Has Its Upper Band Located At $208,550

In a new post on X, analyst Ali Martinez has discussed the Mayer Multiple of Bitcoin. The “Mayer Multiple” here refers to an indicator that keeps track of the ratio between the BTC price and its 200-day MA. One way to interpret the metric is as a measure of the distance away that the asset’s value is from the 200-day MA.

Historically, the 200-day MA has served as a boundary between bullish and bearish trends for the cryptocurrency, so how far its price is from this important line can help indicate potential oversold and overbought conditions.

More specifically, a Mayer Multiple value of 2.4 or more has generally signaled that the asset is becoming overheated. Similarly, a value of 0.8 or under can suggest the coin may be due to a bounce back towards the 200-day MA.

Now, here is the chart shared by the analyst that shows the trend in the 200-day MA of Bitcoin, as well as lines corresponding to the 2.4 and 0.8 Mayer Multiple levels, over the past decade:

Bitcoin Mayer Multiple — The price of the coin appears to be under the 200-day MA at the moment | Source: @ali_charts on X

As is visible in the chart, Bitcoin has recently declined under the 200-day MA, situated at $86,900. This means that the Mayer Multiple has now dropped under the 1.0 mark.

The next potential support for the cryptocurrency could be located at $69,500, corresponding to the level where the Mayer Multiple would assume a value equal to 0.8.

BTC has witnessed a surge in the past day, so it’s currently closer to retesting the 200-day MA than falling back on this support. In the scenario that the asset goes on to retest this mark and successfully break above it, Martinez has noted that the stage might be set for a market top around $208,550.

This level, of course, correlates to the 2.4 Mayer Multiple level. So far in the current cycle, Bitcoin hasn’t made a single touch of this level. From the chart, it’s visible that the bull run in the second half of 2021 attained its peak far below the line, but the cryptocurrency still spent time around it during the first half of the year.

Given the precedence, it’s possible that the asset would hit this mark at least once in the remaining portion of the current cycle. It only remains to be seen, however, whether the pattern holds, considering the uncertainty in the form of tariffs that’s looming over the market.

BTC Price

Bitcoin has shown some sharp recovery during the last 24 hours as its price is back to $81,500 after a jump of over 6%.

Bitcoin Price Chart — The price of the coin appears to have surged | Source: BTCUSDT on TradingView

Featured image from Dall-E, Glassnode.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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