If you’ve been at Crypto Twitter at all, ever, you’ve likely heard of the so-called “Mayer Multiple.”
The Mayer Multiple, for those unaware, is a multiple often used in the Bitcoin market created by prominent BTC investor Trace Mayer. It is simply the price of BTC over the 200-day simple moving average, creating a gauge if the cryptocurrency is overbought, neutral, or oversold.
CryptoWolf, a popular cryptocurrency analyst, recently found that the Mayer Multiple can also be seen as a “risk management tool that will help investors to reduce or increase their BTC exposure [at the correct times.]” Wolf suggested that when the Mayer Multiple is under 0.60, Bitcoin is in a long-term buy zone and hold zone; above 1.90, Bitcoin is in a high-risk area that implies a reduction of exposure; and anything above 2.40, Bitcoin is in an “extremely high-risk area.”
Right now, the Mayer Multiple implies that Bitcoin is in no man’s land, with the Mayer Multiple still hanging around 0.75, implying that BTC has not yet entered a long-term buy zone.
While the Mayer Multiple has yet to enter a long-term buy zone, there are signs that it may be time to start accumulating Bitcoin as a long-term position.
Prominent trader Dave the Wave, a pseudonymous analyst that called the collapse to the $6,700 range months and months ago when BTC was trading above $10,000, noted that Bitcoin has recently reentered its long-term logarithmic buy zone, which marked the bottom last December; a descending triangle meeting the buy zone, which is bullish; and is the heart of a diamond set-up that is likely to break upwards in 2020.
With all this in mind, Dave rhetorically asked, “who’s buying?”
Dave isn’t the only one claiming that now may be a ripe time to buy Bitcoin if you believe in the cryptocurrency’s long-term potential.
Hans Hauge, a senior quantitative researcher at Los Angeles-based crypto fund Ikigai Asset Management, recently gave a confluence of reasons why he remains bullish on the leading cryptocurrency.
One such reason included the fact that the Reserve Risk indicator, which “allows us to visualise the confidence amongst long term bitcoin holders relative to the price of Bitcoin at a given moment in time,” suggesting a long-term buying zone forming, and price holding relatively strong on a macro scale.