The previous week has not been entirely smooth, yet the digital asset sector has responded reasonably well to the initiation of Donald Trump’s new administration. In particular, the Bitcoin value has managed to endure the uncertain turmoil affecting the cryptocurrency market over the last few days.
Although the leading cryptocurrency may have decelerated recently, the latest on-chain analysis suggests that BTC is poised to continue its ascent. Here’s how the token’s value may be preparing for another upward move in the approaching weeks.
Is There Space for Additional BTC Value Appreciation?
In a Jan. 24 update on the X platform, market research agency Glassnode articulated that the Bitcoin price is not currently overheating and still possesses the capability for additional appreciation in the upcoming weeks. This on-chain insight is founded on the Mayer Multiple metric, which is derived as the ratio between an asset’s price and the 200-day moving average (200DMA).
The Mayer Multiple gauges the deviation of the Bitcoin price from its long-term average to assess overbought and oversold scenarios. This measurement is also utilized to establish macro bullish or bearish tendencies while evaluating cyclical price shifts.
Historically, a Mayer Multiple above 2.4 indicates an overbought market state and a potential price peak. Conversely, a Mayer Multiple below 0.8 signals an oversold condition, suggesting that a market low may be occurring.
Source: Glassnode
As per the data from Glassnode, Bitcoin’s Mayer Multiple currently stands at 1.37, signaling that the primary cryptocurrency is still quite removed from the overbought zone. This information suggests that BTC retains space for further growth in this phase. Additionally, the Bitcoin price is at least 35% higher than the 200-day moving average, which is a positive signal.
Glassnode emphasized that Bitcoin’s price would need to rise beyond $180,000 to enter the overbought region. This price point denotes the potential peak for the primary cryptocurrency in this ongoing cycle and might be followed by a trend reversal. With the oversold threshold at 0.8, the Mayer Multiple positions the Bitcoin price low at approximately $60,000.
The Bitcoin value has not been particularly remarkable since exceeding the $100,000 milestone, resulting in claims of a price peak in the market. This metric somewhat offers clarity into the potential trajectory of the leading cryptocurrency in the months to come.
Bitcoin Price Summary
As of this moment, the value of Bitcoin rests just under $105,000, demonstrating no notable fluctuations in the preceding day.
The value of BTC on the daily chart | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart sourced from TradingView
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