Data shows the Bitcoin Mayer Multiple has declined to the lower bound of its range recently, which suggests a slowdown in momentum for BTC.<\/p>\n
As explained by on-chain analytics firm Glassnode in a new post<\/a> on X, the Bitcoin Mayer Multiple has retraced to the lower bound of its long-term range. The \u201cMayer Multiple<\/a>\u201d refers to an indicator that keeps track of the ratio between the BTC spot price and its 200-day moving average (MA).<\/p>\n In technical analysis (TA)<\/a>, the 200-day MA is considered as a boundary between macro bullish and bearish trends. Whenever BTC is trading above this line, a bullish bias may be assumed to be in play. Similarly, the asset being under the mark can imply a market downturn.<\/p>\n Since the Mayer Multiple compares the spot price with this level, it essentially tells us about how far above or below Bitcoin is from the bull-bear boundary. The cryptocurrency gaining a large distance over the 200-day MA may imply it\u2019s becoming overpriced, while it being too far under could increase the chances of a rebound to the upside taking place.<\/p>\n Now, here is the chart shared by Glassnode that shows how the Bitcoin Mayer Multiple is looking right now:<\/p>\n As displayed in the above graph, the Bitcoin spot price has broken below the 200-day MA with its recent downtrend, which has resulted in the Mayer Multiple approaching a value of 0.8.<\/p>\n This 0.8 level happens to be where the indicator\u2019s long-term range has found its lower boundary in the past. The last time the metric fell below this line was during the 2022 bear market.<\/p>\n \u201cHistorically, such compressions have aligned with value-driven phases where price consolidates and demand begins to step in,\u201d noted the analytics firm. It now remains to be seen whether a break below is coming for Bitcoin or not.<\/p>\n This technical boundary isn\u2019t the only one that BTC is retesting; there are also a couple of important on-chain levels that the cryptocurrency happens to be trading around right now, making the current range a potentially significant one.<\/p>\n