Bitcoin

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A widely used Bitcoin valuation indicator is flashing red, signaling that Bitcoin hasn’t been this undervalued since the collapse of the cryptocurrency exchange FTX at the end of 2022.
“If you believe the Bitcoin price will be higher in 6-12 months, then this is objectively a fantastic time to buy,” crypto education resource On-Chain College wrote in an Aug. 7 X <a href="https://x.com/OnChainCollege/status/1821191461721010611" target="_blank" rel="noopener nofollow">post</a>, referring to the Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) Mayer Multiple chart.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/ef33c7e4-eb7f-4a3e-bb67-2611f1ac21ae.png" alt="Bitcoin possibly undervalued as Mayer Multiple hits lowest level since FTX collapse" title="">
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 Mayer Multiple creator Trace Mayer says any value below 2.4 is “buy territory.” Source: Bitbo
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The indicator compares Bitcoin’s current price to its 200-day moving average, and the resulting ratio is used as a buy or sell signal. Its creator, Trace Mayer, considers a reading below 2.4 to be “buy” territory.
<a href="https://insights.glassnode.com/the-week-onchain-week-32-2024/" target="_blank" rel="noopener nofollow">According</a> to Glassnode, on Aug. 5, the Mayer Multiple had a value of 0.88 when Bitcoin fell to $49,751. Following Bitcoin’s rebound, the metric has risen slightly to 0.93, <a href="https://charts.bitbo.io/mayermultiple/" target="_blank" rel="noopener nofollow">according</a> to Bitcoin analytics firm BitBo data.
Analysts suggest this means the asset is still undervalued, as the Mayer Multiple has been “higher 70%” of the time since Bitcoin’s creation.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/63f66ddb-bfb8-43cd-bafb-2ccfce6e17ef.png" alt="Bitcoin possibly undervalued as Mayer Multiple hits lowest level since FTX collapse" title="">
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 Bitcoin is up 3.31% over the past 30 days. Source: CoinMarketCap
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Despite the metric, other crypto analysts recommend that Bitcoin traders hold off for now in case of further dips in the near term.
On Aug. 6, 10x Research head of <a href="https://cointelegraph.com/news/bitcoin-40k-price-bull-market-entry-10xresearch-crypto-traders#:~:text=COINTELEGRAPH%20IN%20YOUR%20SOCIAL%20FEED&amp;text=%E2%80%9CTo%20ideally%20time%20the%20next,attempt,%E2%80%9D%20Thielen%20told%20Cointelegraph.">research Markus Thielen stated</a>, “To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s.”
Related: <a href="https://cointelegraph.com/news/bitcoin-decline-similar-2016-bull-run-peter-brandt">Bitcoin decline is similar to the start of the 2016 bull run — Peter Brandt</a>
“We would then expect another major rally attempt,” Thielen told Cointelegraph.
Meanwhile, popular crypto trading account “wallstreetbets” pointed to the recent dip in Bitcoin’s price, reiterating in an Aug. 6 X&nbsp;<a href="https://x.com/wallstreetbets/status/1820921354851422542" target="_blank" rel="noopener nofollow">post</a> that “Everyone gets Bitcoin at the price they deserve.”
“If the $60,000 support is lost on a closing basis, we may see a retest of the long-term trendline support before higher,” pseudonymous crypto trader Mags <a href="https://x.com/thescalpingpro/status/1820135866020565461" target="_blank" rel="noopener nofollow">added</a>.
Magazine: <a href="https://cointelegraph.com/magazine/5-ways-crypto-bots-are-ruining-crypto-including-auto-memecoin-rug-pulls/">How crypto bots are ruining crypto — including auto memecoin rug pulls</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin possibly undervalued as Mayer Multiple hits lowest level since FTX collapse

Cointelegraph

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