Bitcoin (BTC) has dropped enough that one of its most well-known indicators signals that a rare long-term investment opportunity is here.
As of February 22, Mayer Multiple it is at its lowest level since Bitcoin bounced to $29,000 in July of last year.
Mayer Multiple drops 50% in 3 months
The latest in a series of metrics to echo the pit of the 2021 retracement in the BTC/USD pair, the Mayer Multiple currently measures 0.76, having halved from November’s all-time high of $69,000.
The Multiple measures the current price of Bitcoin against its 200-day moving average. Your Creator, Trace Mayer believes that any reading below 2.4 offers an increasingly profitable trade for potential investors, and the lower the score, the more likely a long-term buy will prove effective.
By context, the Multiple spends most of its time above 0.8 and has been above its current level 87% of the time since 2011.
The current drop in the metric did not go unnoticed, and several social media users drew attention to her In the past week.
Another curiosity lies in the last peak of November. Despite all-time high prices, the Multiple only reached the area around its all-time median of 1.42, making the $69,000 high different from previous highs.
Where are the deposits?
As Cointelegraph reported this week, meanwhile, existing investors are overwhelmingly choosing to hold onto their BTC.
Those who bought a year ago or earlier are growing in number, even as prices begin to fall below their position from the same time in 2021.
#bitcoin $BTC Percent Supply Last Active 1+ Years just reached a 14-month high of 60.998%
Previous 14-month high of 60.993% was observed on 21 February 2022
View metric:https://t.co/1j255TMTVz pic.twitter.com/CLG26IZqK1
— glassnode alerts (@glassnodealerts) February 22, 2022
#Bitcoin $BTC Supply Percent Last Active 1+ Years Just Hit a 14-Month High of 60.998%
Previous 14-month high of 60.993% was seen on February 21, 2022
However, with very little interest from retail investors, commentators argue that the current setup is almost dictated by market makers.
“After reaching its peak in May last year, the Taker Buy Volume (liquidity) is declining. For a year, the expected movement did not appear and liquidity decreased, new deposits continue to decrease”, Mignolet, a contributor to the firm of CryptoQuant on-chain analysis. Quicktake Series, summarized on Sunday.
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