BTC in the Gutter using Bitcoin’s Mayer Multiple Metric, Lowest Since 2015
It's only those that are completely out of the loop and under a rock that doesn't see that the cryptocurrency market is going through some rocky days in 2018. Following a high watermark period between November and January, the likes of Bitcoin have seen a series of corrections which has set it on a downward path, shattering a number of lower supports in the process.
There's one particular trend that has since been otherwise overlooked, and it's one that the founder of Adamant Capital, Tuur Demeester, took to Twitter in order to bring to users attention.
— Tuur Demeester (@TuurDemeester) September 14, 2018
So, first question is this: what on earth is the Mayer Multiple, and followed swiftly by the follow-up why does it matter?
The Mayer Multiple refers to the overall moving price of Bitcoin, and in Demeester's post, he attempts to demonstrate, not only the peaks of its value, but also its lows, which has since fallen to 2015 levels.
Close but not the Full Picture
While Demeester makes a very concise and effective point, there is a small inaccuracy in the chart he uses, which comes from an older analysis, as one Twitter follower points out and subsequency corrects.
Hey Tuur, love your work, but this chart is not current and IMO should be on a log scale for visual clarity. I just verified it on my own chart stack. Here it is. If previous bears are anything to go buy, we can drop to 0.4-0.5. pic.twitter.com/JRM1MUwGgl
— Willy Woo (@woonomic) September 16, 2018
While a little inaccurate, what it does demonstrate is that Bitcoin has performed at a low point, but the wider chart demonstrates a rally as opposed to continued decline.
So there's some good news with this series of posts.