A crypto strategist believes Bitcoin (BTC) and Ethereum (ETH) have more room to move to the upside this cycle before markets take a bearish turn.
Trader Ali Martinez tells his 120,000 followers on the social media platform
The Mayer Multiple is a technical tool that measures the difference between the current price of BTC and the 200-day moving average to determine whether Bitcoin is overbought or oversold.
According to Martinez, the technical indicator has historically been perfect at marking the top of the bull market for Bitcoin.
“Historically, the Mayer Multiple has identified Bitcoin overbought conditions when BTC trades above the 2.4 oscillator. Every market top has occurred above this level.
Currently, the 2.4 level is near $182,000, indicating that BTC still has room to grow.”
At the time of writing, Bitcoin is trading at $98,772.
As for Ethereum, Martinez says he is keeping a close eye on ETH’s market value to realized value (MVRV), an on-chain metric used to measure whether an asset is witnessing extreme levels of unrealized gains or losses . When the MVRV price range is float above 2.4 for about 6% of trading days indicates a greater likelihood of profit-taking by investors, which could mark a cycle top.
Say Martinez,
“In every bullish cycle, Ethereum ETH has surpassed the 3.2 MVRV price band. Currently this level stands at $6,770!”
At the time of writing, ETH is trading at $3,072.
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Generated image: Midjourney