Bullish signals suggested by Bitcoin's multiple indicators

CryptoMom · 2026-02-22T10:08:40+00:00

Charles Edwards, founder of Capriole, expresses optimism about the current Bitcoin market, noting that the Mayer multiple indicator shows low levels historically associated with buying opportunities. With BTC currently around $68,020, this indicator could guide investor decisions amidst potential price fluctuations.

CryptoMom

2026-02-22 10:08:40

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Charles Edwards, founder of Capriole, has expressed an optimistic outlook on the current Bitcoin market. According to ChainCatcher, the key technical indicator used to evaluate Bitcoin, the “multiple,” is approaching levels not seen in recent years, signaling a bullish market sentiment. With Bitcoin currently trading around $68,020, understanding the significance of this indicator is an important factor for investors making decisions.

What the Multiple Indicator Indicates About Buying Opportunities

The Mayer Multiple is a technical indicator used in cryptocurrency market analysis, developed by Trace Mayer. It compares Bitcoin’s current price to its 200-day moving average (200DMA) to assess whether the market is overvalued or undervalued.

ChainCatcher’s analysis notes that the multiple has rarely fallen near 0.6 and is now approaching that level. Historically, Bitcoin prices within this range have often represented the most attractive buying opportunities for investors.

Overheating and Oversold Conditions in Technical Analysis

Understanding how to interpret the Mayer Multiple helps in recognizing market cycles. Generally, when the multiple exceeds 2.4, it suggests the market is overheated, often foreshadowing a correction or transition into a bear market.

Conversely, when the multiple drops below 0.8, it indicates the market is undervalued, presenting a buying opportunity. The current level around 0.6 is even lower than this threshold, providing a basis for Charles Edwards’ bullish outlook.

Investment Decisions in the Current Bitcoin Market

Based on the latest data, with Bitcoin trading in the $68,000 range, the low valuation suggested by the Mayer Multiple is a significant signal for market participants. Historically, such low multiple levels have often preceded major price corrections, offering a potential entry point.

However, the possibility of further price declines cannot be entirely ruled out. Nonetheless, from an objective technical analysis perspective, the current level creates a positive environment for long-term investment decisions.

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