Despite the high levels of volatility seen yesterday, Bitcoin stabilized around $7,200. Now, a renowned technical analyst suggests that it is a good time to be “stacking sats” while another estimates a further correction.
Bitcoin is fairly “cheap”
In a recent tweet, Ecoinometrics points out that Bitcoin is trading at a “cheap” price relative to its long-term trend. Based on the Mayer Multiple, a ratio of the price of BTC to its 200-day moving average, the analyst believes that under the current price levels the pioneer cryptocurrency presents a good opportunity for investors to buy.
“[Bitcoin is] still cheap when looking at the big picture. So no reason for not #StackingSats today!”
At the moment, the Mayer Multiple sits at 0.78x. A low value, such as the current one, is indicative of fair prices while a high value implies that Bitcoin is relatively expensive.
Lower lows ahead
The chartist argues that this technical index is stipulating that the pioneer cryptocurrency is currently in a bear market. After spending more than 40 days below the 200-day moving average, BTC could be pushing for lower lows.
CryptoKea affirms that Bitcoin is trading within the bearish channel of the Mayer Multiple, which is between 1.1x and 0.55x. He considers this area to be the “first stop.”
From now on, BTC could continue trending down for the next one to six months before it enters the “oversold” territory. According to the analyst, this is when a “very good buy opportunity” will be presented as the Mayer Multiple goes below 0.55x.
“If we take a look at how much higher the [Mayer Multiple] lows came in each [of the previous] bear cycles, conservatively, the 4th one could come in 15 percent higher than 0.51x which would lead to a low of $5,500.”
Although Bitcoin appears to have entered an accumulation zone, CryptoKea is not the only prominent analyst in the industry who is expecting lower lows. The growing concerns about the PlusToken scammers manipulating the market have prevented investors from buying in while others are still holding. Time will tell whether BTC is ready to break out of the downtrend it entered in June or continue falling.
Bitcoin, currently ranked #1 by market cap, is down 0.12% over the past 24 hours. BTC has a market cap of $130.19B with a 24 hour volume of $26.94B.
Chart by CryptoCompare
Posted In: Bitcoin, Analysis, Price Watch
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After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.
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