Bitcoin Holds Firm Amid Uncertainty: Mayer Multiple Suggests Undervaluation

Bitcoin is holding steady above $108,000, maintaining a bullish structure despite repeated failures to break through its all-time high near $112,000. The Mayer Multiple, a classic indicator measuring BTC's price relative to its 200-day moving average, currently stands at 1.1x, putting BTC in the "neutral" zone and far below overbought conditions typically seen in late bull markets. Historically, readings below 1.5x suggest significant upside potential before hitting speculative extremes. If Bitcoin can hold its current levels and push decisively above resistance, the neutral Mayer Multiple reading could serve as a launchpad for a renewed bullish trend.

Bitcoin (BTC) is currently trading near $109,404, approaching its all-time high of $111,980, and holding steady above $108,000 despite repeated attempts to break through the $112,000 barrier [1]. This resilience is notable given the increased selling activity from long-term holders (LTHs), which has raised caution among investors. According to COINOTAG sources, new Bitcoin addresses continue to rise, indicating sustained investor interest amid market fluctuations [1].

The Mayer Multiple, a classic indicator measuring BTC's price relative to its 200-day moving average, currently stands at 1.1x, placing BTC in the "neutral" zone and far below the overbought conditions typically seen in late bull markets [2]. Historically, readings below 1.5x suggest significant upside potential before hitting speculative extremes. If Bitcoin can hold its current levels and push decisively above resistance, the neutral Mayer Multiple reading could serve as a launchpad for a renewed bullish trend.

Market observers note that while LTH selling indicates a degree of impatience or profit-taking ahead of a new all-time high, the lack of a significant price drop underscores a balanced market dynamic. This resilience may be attributed to sustained demand from newer investors and traders entering the market [1].

Bitcoin’s current trading price of approximately $109,404 places it just below a critical resistance level at $109,476. The recent recovery from $108,000 has positioned Bitcoin strongly, with the immediate target set at $110,000. Successfully breaking this resistance could pave the way for Bitcoin to challenge its all-time high [1].

Institutional buying continues to support Bitcoin, with U.S.-listed Bitcoin ETFs adding $216.5 million worth of BTC on July 7, despite price dips. This strong buying confidence from big players is a positive indicator of growing market participation and renewed investor optimism [2].

Bitcoin’s approach to the $110,000 resistance level is marked by a complex interplay between increased selling from long-term holders and sustained interest from new investors. While LTH selling introduces caution, the steady price and rising new addresses indicate a resilient market environment. Investors should monitor these dynamics closely, as the balance between supply from LTHs and demand from newcomers will likely dictate Bitcoin’s near-term price direction [1].

References:
[1] https://en.coinotag.com/bitcoin-nears-all-time-high-as-long-term-holder-selling-raises-caution-among-investors/
[2] https://coinfomania.com/bitcoin-hits-compression-zone-as-analysts-predict-breakout-on-etf-flows/