Bitcoin Not Overheated at $103,000 Says Mayer Multiple

An analyst has highlighted that the Mayer Multiple, an indicator that tracks the ratio between the Bitcoin spot price and its 200-day moving average, suggests that Bitcoin is not overheated even at a price of $103,000. The Mayer Multiple Z-Score, which measures the deviation of the Mayer Multiple from its mean value, is currently negative. This indicates that the current price of Bitcoin is below the historical average, suggesting that the asset is relatively cool.

The 200-day moving average is a significant boundary that separates macro bullish and bearish trends in the cryptocurrency market. The Mayer Multiple Z-Score, an oscillator, tracks how much the Mayer Multiple deviates from its mean value. The current value of the Z-Score is negative, which means that the Mayer Multiple is below its historical average. This suggests that Bitcoin is not overheated at its current price of $103,000.

The analyst notes that 53% of all days have seen the Mayer Multiple ratio higher than the current level. This further supports the idea that Bitcoin is not overheated at its current price. The Z-Score has improved compared to the lows from earlier in the year, and if Bitcoin continues its bullish momentum, it could challenge the zero level soon.

In the current cycle, the Mayer Multiple has been higher than its mean on a few occasions, with the largest separation occurring in the rally from Q1 2024. However, the Bitcoin Mayer Multiple hasn't deviated to the same degree as during the bull run from the first half of 2021. It remains to be seen whether the metric will heat up to similar levels in this cycle.

At the time of writing, Bitcoin is trading around $102,700, down 1.5% over the last seven days. The price of the coin hasn't budged much recently, which could be a sign that the market is consolidating before the next move.