Emily Walker
The last week has seen some challenges, yet the digital asset market seems to be handling the transition to Donald Trump’s new administration quite well. Bitcoin, in particular, has managed to navigate the tumultuous waters that the cryptocurrency space has encountered recently.
While Bitcoin’s growth has decelerated in recent days, new on-chain data suggests that BTC may be poised for another increase in the upcoming weeks. Here’s a look at what could be driving the token’s potential price growth.
Can BTC Price Continue to Climb?
On January 24, market analysis company Glassnode noted that Bitcoin’s current price isn’t showing signs of overheating, indicating that there’s still potential for further appreciation in the weeks ahead. Their insights are drawn from the Mayer Multiple indicator, which compares an asset’s price to its 200-day moving average (200DMA).
The Mayer Multiple is a useful tool for assessing how far Bitcoin’s price is from its long-term trend, helping to identify whether the market is overbought or oversold. It also aids in determining overarching bull or bear market trends based on historical price movements.
Typically, a Mayer Multiple above 2.4 signals an overbought market and hints at a possible price peak, whereas a value below 0.8 indicates an oversold market, suggesting a bottom might be reached.
Currently, Glassnode reports that Bitcoin’s Mayer Multiple is at 1.37, suggesting the cryptocurrency still has a considerable way to go before it enters overbought territory. This indicates there’s potential for further price increases during this cycle. Moreover, Bitcoin is trading at least 35% above its 200-day moving average, signalling a positive trend.
To hit the overbought mark, Bitcoin would need to rise above $180,000, which Glassnode identifies as the potential peak for this cycle, followed by a possible trend reversal. The oversold level is set at a Mayer Multiple of 0.8, which implies a market low of approximately $60,000.
Since crossing the $100,000 threshold, Bitcoin’s price performance has not instilled much confidence, leading many to declare a price peak has been reached. This indicator sheds light on the likely trajectory for Bitcoin in the ensuing months.
Current Bitcoin Price Overview
At the time of this update, Bitcoin is trading just below $105,000, showing minimal fluctuation within the last 24 hours.