Bitcoin has experienced a “healthy reset” in bullish sentiment due to a key BTC price indicator reaching eight-month lows.
On June 27, popular analyst On-Chain College highlighted on X (formerly Twitter) that classic patterns are repeating on the Bitcoin Mayer Multiple.
Although Bitcoin remains at $60,000, a notably bearish sentiment has followed its recent 17% dip.
As reported by Cointelegraph, the Crypto Fear & Greed Index is nearing its 2024 lows, and there is little optimism among average hodlers on social media for a price rebound.
The Mayer Multiple, however, suggests that a recovery might be imminent.
This indicator measures Bitcoin’s current price against its 200-day moving average, providing a buy or sell signal based on the resulting ratio.
Its creator, Trace Mayer, originally considered a reading below 2.4 as “buy” territory.
Data from on-chain analytics firm Glassnode shows that as of June 26, the Mayer Multiple stood at 1.05.
READ MORE: German Government Wallet Sells $54 Million in Bitcoin, Sparking Price Drop Concerns
In contrast, for the Mayer Multiple to hit 2.4, the price would need to be nearly $140,000. BTC/USD last reached a 2.4 reading in March 2021.
“The Bitcoin Mayer Multiple is now at a level not seen since October 2023, despite the price being $60.9K now vs. $29.9K back in October,” On-Chain College commented.
“A healthy reset of sentiment to shift back bearish while being at twice the price.”
Extreme lows in the Mayer Multiple do not always align with BTC price floors. In mid-2022, the indicator bottomed at around 0.47, but it took another four months for the price to mark the bear market’s lowest point.
As Cointelegraph continues to report, price strength is a hot topic in June, with the Mayer Multiple not being the only “buy” signal currently valid.
Bitcoin’s relative strength index (RSI) has also entered “oversold” territory across multiple timeframes.
On the daily chart, RSI was last at this week’s levels in August 2023 — a period when other bull market support trendlines, such as the short-term holder cost basis, were similarly violated.
“The last time the RSI was this low, Bitcoin had just consolidated for 3+ months, just below the key resistance @ 30k,” popular trader Jelle noted.
“We’re looking at 3+ months of consolidation below 70k now. History repeating?”
BTC/USD was trading at around $60,700 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView.
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