Bitrabo Editorial
Currently, Bitcoin’s price is steady, hovering under $60,000, following a positive trend in the latter part of the previous week. In the short-term, the market seems to be leaning upward, as prices remain within the bullish range established on September 13, despite some current weakness.
Has Bitcoin Reached Its Lowest Point?
With prices declining, on-chain metrics indicate growing strength, suggesting that Bitcoin may be nearing a market bottom. An analyst highlighted on X that data from CryptoQuant shows the Mayer Multiple—a gauge of market sentiment—has dropped.
The Mayer Multiple level has decreased from 1.82 to 0.9 and is expected to drop further. If it reaches 0.7, this could indicate a significant market bottom, which is estimated to fall between $46,000 and $50,000.
It’s important to understand that while the Mayer Multiple is informative, it is a lagging indicator, calculated by dividing the current BTC price by its 200-day moving average. A reading below 1 suggests possible undervaluation, which is currently the case.
From a technical perspective, Bitcoin’s positive trend is supported by the daily chart’s configuration. Even as prices dip below $60,000, they remain within the bullish zone from September 13. Considering the recent drop in price with lower trading volumes could favor buyers.
If BTC can sustain above the $56,500 mark, buyers will have more opportunities, particularly if it can rise above last week’s peak around $61,000.
Indicators from the Futures Market
In addition to the Mayer Multiple pointing towards a potential bottom, the analyst expresses optimism based on emerging strength in the Bitcoin futures market.
The Futures Sentiment Index for Bitcoin is on the rise, according to CryptoQuant data. Historically, price movements tend to coincide with such upward trends in the index.
Although this development is encouraging, Bitcoin bulls need to accelerate and surpass local resistance levels. A solid closure above $69,500 could potentially generate FOMO (fear of missing out), propelling Bitcoin to new highs.