Renowned analyst Nicholas Merten looks at a price pattern that shows Bitcoin (BTC) is oversold and primed for a major rally.
In a new video, Merten shows to speak with its 511,000 subscribers, that it keeps an eye on the Mayer Multiple, an oscillator that uses the relationship between price and a 200-day moving average.
According to Merten, the Mayer Multiple is showing a strong signal that BTC is in a bottoming phase and will start rising again soon.
“Usually when the indicator is below the green line, it is a signal that the price is oversold and it is time for bitcoin to move higher. The reality is that prices are not only going up in the short term, but for many months. The price is likely to rally towards the pink band which is overbought in the market and a good time to take or reject profits.”
Bitcoin Mayer Multiple Indicator | Source: glass node
Throughout Bitcoin’s history, the analyst said that the Mayer Multiple has acted as a good indicator for identifying the bottom of a downtrend. He cites Bitcoin’s price reversal last July and the March 2020 market crash caused by the pandemic.
“We can see here that the price had a healthy correction back below the blue line in February this year. And it’s very similar to what we saw here in July 2021, just before prices started to rise.
Furthermore, we have not only seen this in the last few months but also in the March correction [năm 2020]where prices have plummeted due to the pandemic.”
You can see the BTC price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
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