In a Jan. 24 post on the X platform, market intelligence firm Glassnode explained that the Bitcoin price is not yet overheating and still has the potential for further growth over the next few weeks. This on-chain revelation is based on the Mayer Multiple indicator, which is calculated as the ratio between as asset price and the 200-day moving average (200DMA).
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The Mayer Multiple measures the distance of the Bitcoin price from its long-term average to estimate overbought and oversold conditions. This metric is also used to establish macro bull or bear bias when analyzing cyclical price movements.
Historically, the Mayer Multiple signals an overbought market condition and a potential price top when its value is above 2.4. On the other hand, a Mayer Multiple value below 0.8 suggests an oversold condition and that a market bottom might be in.
