Originally published on: August 08, 2024
Bitcoin’s valuation indicator, the Mayer Multiple, has hit its lowest level since the collapse of FTX, signaling a possible undervaluation of the cryptocurrency. According to On-Chain College, now may be an opportune time to invest in Bitcoin if you believe its price will rise in the coming months.
The Mayer Multiple compares Bitcoin’s current price to its 200-day moving average, with a reading below 2.4 indicating a buying opportunity. Recent data from Glassnode shows that the Mayer Multiple dropped to 0.88 on August 5 when Bitcoin fell to $49,751, but has since risen slightly to 0.93 as Bitcoin rebounds.
Despite this undervaluation, some analysts caution against immediate investment, suggesting that Bitcoin could dip further in the short term. Markus Thielen of 10x Research recommends waiting for Bitcoin prices to fall into the low $40,000s before considering entry into the next bull market.
On the other hand, a popular crypto trading account, “wallstreetbets,” highlights the recent price dip in Bitcoin, emphasizing that investors get Bitcoin at the price they deserve. Pseudonymous trader Mags predicts a potential retest of long-term trendline support if Bitcoin loses the $60,000 support level.
While the future of Bitcoin remains uncertain, it’s essential to conduct thorough research before making any investment decisions. Stay informed about market trends and potential opportunities by subscribing to our Markets Outlook newsletter for critical insights and trading strategies. Don’t miss out on valuable information to help guide your investment choices.
