Bitcoin is currently hovering at $20,916

Bitcoin Bounces Off Historic “Mayer Multiple” Bottom Zone

As per the latest weekly report from Glassnode, the BTC price has escaped above the Mayer Multiple bottom zone.

The “Mayer Multiple” is an indicator that measures the ratio between the current Bitcoin price and the 200-day moving average of the same.

A “moving average” (or MA in brief) is an analytical tool that takes the average of any quantity over a specified period, and as its name implies, it moves with the quantity and changes its value accordingly.

MAs are quite useful in studying long-term trends as they eliminate any short-term fluctuations and smooth out the curve.

The Mayer Multiple basically tells us how the latest value of the crypto has deviated from the average during the past

200 days. Based on this, it becomes possible to say whether the coin is currently overbought or oversold.

Now, here is a chart that shows the trend in the Bitcoin “Mayer Multiple = 0.55” line during the last several years:

Full article here:https://www.newsbtc.com/news/bitcoin/bitcoin-bounces-historic-mayer-multiple-bottom-zone/