It wasn’t exactly rosy last week, but the digital asset market has responded fairly well to the start of the new Donald Trump administration. Specifically, the price of Bitcoin has been able to weather the uncertain storm that has hung over the cryptocurrency market over the past few days.
While the major cryptocurrency may have slowed in recent days, the latest on-chain observation shows that Bitcoin is likely to continue its upward movement. Here’s how the token price could be preparing for another move over the coming weeks.
Is there room for further growth in Bitcoin prices?
In a January 24 post on the X platform, market intelligence company Glassnode He explained The price of Bitcoin has not risen yet and still has the potential to achieve further growth over the next few weeks. This series detection is based on the Mayer Multiple Indicator, which is calculated as the ratio between the asset price and its 200-day moving average (200DMA).
The Mayer multiplier measures the distance between Bitcoin’s price and its long-term average to estimate overbought and oversold conditions. This measure is also used to determine overall bullish or bearish bias when analyzing cyclical price movements.
Historically, the Mayer multiplier indicates an overbought market condition and the highest potential price when its value is above 2.4. On the other hand, a Mayer Multiple value of less than 0.8 indicates an oversold condition and that the market may be at a bottom.
Source: Glassnode
According to data from Glassnode, Bitcoin’s Mayer Multiple value is 1.37, indicating that the major cryptocurrency is still a long way from the overbought zone. This data suggests that BTC still has room for further growth this cycle. Furthermore, Bitcoin price is at least 35% above its 200-day moving average, which is a bullish signal.
Glassnode highlighted that Bitcoin price would need to rise above $180,000 to become overbought. This price level represents a potential peak for the major cryptocurrency in this current cycle and could be followed by a trend reversal. With the oversold threshold at 0.8, the Mayer Multiple sets the price of Bitcoin at around $60,000.
The price of Bitcoin has not been particularly impressive since it crossed the $100,000 mark, leading to rallying cries in the market. This indicator somewhat provides an insight into the likely path of the leading cryptocurrency over the next few months.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is just below $105,000, reflecting the lack of significant movement in the past day.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
