Due to an unpredictable macro environment, Bitcoin price dropped from $45,000 to $40,800 in just 48 hours. After the bulls failed to hold $42,000 for a long time, Bitcoin (BTC) succumbed to new macro forces on March 4. Now, analysts are assessing suitable opportunity zones for a bull signal strengthened as BTC hits higher highs. Cryptokoin.com is providing the details…
Nicholas Merten says historically correct Bitcoin signal is now on
A well-known crypto analyst, Bitcoin (BTC) is oversold and is ready for a major bull run examines a model that shows In a recent Youtube video, Nicholas Merten shares his interest in the Mayer Multiple, an oscillator that uses price and 200-day moving average rates. The wide time frame oscillator is considered one of the most important moving averages. According to Merten, the Mayer Multiple is currently strong and shows that BTC is due to higher price action. The analyst interprets the Glassnode chart below as:
When we are below the green line, it is usually a sign that the market has been oversold and now is a good opportunity to buy Bitcoin. Not only because the price tends to rise later in the short term, but over the next few months, once it drops below the green zone, it’s likely to head back to the pink band where markets are typically overbought.
According to Merten, the Mayer Multiple has recently been a reliable indicator for spotting the bottom of a downtrend for Bitcoin. The crypto analyst points to Bitcoin’s price return in July of last year and the March 2020 market crisis caused by the pandemic:
As you can see, in February of this year, the pricing corrected nicely below this green zone. And that’s pretty similar to what we observed in July 2021, just before prices started to rise. We’ve also seen this relevance not just in the last few months, but here during the March (2020) drop when prices dropped significantly due to the pandemic.
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