Bitcoin auxiliary indicator enters 2022 bear-market territory… “Focus on whether this is a bottoming zone”

An analysis suggests that the Mayer Multiple, a Bitcoin (BTC) price metric, has fallen to a level similar to that seen during the 2022 bear market. In the market, interpretations are split over whether Bitcoin has entered a bottoming zone.

According to Cointelegraph, a cryptocurrency-focused media outlet, the Mayer Multiple recently fell to 0.65. This auxiliary indicator shows Bitcoin’s price level relative to its 200-day moving average, a reading typically observed during deep bearish phases in the past. It is the first time the indicator has dropped to this level since May 2022.

The Mayer Multiple is calculated by dividing Bitcoin’s price by its 200-day moving average, and the area below 0.8 is generally classified as an oversold zone.

However, some analyses say a drop in the indicator does not necessarily mean an immediate price bottom. During the 2022 bear market, the Mayer Multiple fell further to about 0.47, and Bitcoin’s price went through an additional roughly four months of declines before bottoming around $15,500.

Further downside risk is also being discussed. Bitcoin’s 200-week moving average is currently around $58,000, and in past extreme bear phases, there have been repeated cases of declines down to that area. The market also suggests that if conditions worsen, it may be difficult to rule out a return to the $40,000 range.

In addition, on the technical side, the relative strength index (RSI) still leaves room for further declines. Some analyses also present the view that if a flow similar to past bottom-formation phases continues, the correction could extend to the low-$50,000 range.