Price / 200-Day Moving Average - A Simple Valuation Tool
Mayer Multiple Chart
What is the Mayer Multiple?
The Mayer Multiple is a simple yet powerful indicator created by Trace Mayer. It calculates the ratio of Bitcoin's Last Traded Price to its 200-day moving average (200DMA). This ratio helps identify potential market cycles, overbought conditions, and accumulation zones.
Interpretation: A Mayer Multiple below 1.0 suggests Bitcoin is trading below its 200-day average (potential accumulation zone), while values above 2.4 historically indicate bubble territory. The long-term average is around 1.4-1.5, making it a useful benchmark for identifying extremes in market sentiment.
Historical Significance: Major cycle tops have typically occurred when the Mayer Multiple exceeded 2.4-3.0, while deep undervaluation zones (MM < 0.8) have marked exceptional buying opportunities.
