One of the most popular indicators for analyzing bitcoin shows that current price levels are very suitable for long-term investment. Meanwhile, long-term bitcoin holders are still reluctant to sell.
According to the Telegraph, bitcoin has fallen so much in recent weeks that one of the most popular analysis tools available shows that its current price is very suitable for long-term investment.
Yesterday, the Mayer multiple index reached its lowest level since July 2021. July was the time when bitcoin began to jump from the $ 29,000 range.
The Mayer ratio compares the current price of bitcoin with its 200-day moving average. Its creator, Trace Meyer, believes that if this ratio falls below 2.4, it could indicate a very profitable investment opportunity. In addition, the lower the ratio, the more likely it is that buying or investing will be more profitable and profitable in the long run.
The Mayer ratio is one of the tools used to study the large-scale reform of bitcoin in 2021. The index is currently 0.76 and has halved compared to November 2021 (November), when bitcoin peaked at 69 $ 000.
The Mayer ratio is more often than 0.8 and is 87% higher than its current level since 2011. Last week, the Mayer decline also attracted the attention of various social media users.
The interesting moment in the photo above is the peak of November. Although the price of bitcoin reached a record high of $ 69,000 in November, the Mayer ratio rose only to its all-time average of 1.42. At previous peaks, however, the Meyer coefficient was higher than this figure.
Current bitcoin investors are determined to raise capital. Although the price of bitcoin is much lower than at the same time in 2021, the number of intact units purchased in a year or more is gradually increasing.
Glassnode wrote on Twitter yesterday:
The share of bitcoin units that have not been traded for more than a year has reached its 14-month high of 60.998%.
Given the small share of small investors in the market, according to analysts, those whose latest trend is influenced by the activities of the market maker.
Minlet, an analyst at CryptoQuant, said:
Bitcoin Taker’s volume peaked in May last year and has been declining since then. For a year now, bitcoin has been moving contrary to the expectations of traders and analysts, and the amount of liquidity has decreased. The trend of new deposits and investments continues to decline.
A trader is a trader who makes a purchase or sale at the current price and does not register his order in a limited way and at prices other than the current market price.
Read also: Who are the creators and takers of the market?
The publication The Bitcoin Price Analysis Tool shows that now is a good time for long-term investment, appeared for the first time in the digital currency.