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Bitcoin's Mayer Multiple Signals Undervaluation Despite Near All-Time Highs
Despite Bitcoin (BTC) trading near its all-time highs, a recent analysis utilizing the classic Mayer Multiple metric suggests that the cryptocurrency is currently undervalued. This indicator, which compares BTC's price to its 200-day simple moving average, points to significant room for a new upward impulse in the market, challenging perceptions of an overheated bull run.
The Mayer Multiple: A Deeper Look
Axel Adler Jr., a contributor to CryptoQuant, highlighted that the Mayer Multiple currently stands at 1.1x. This value falls within the neutral zone (0.8–1.5x) and is considerably below the overbought threshold of 1.5x. This indicates that Bitcoin is trading at a discount compared to its historical bull rallies, suggesting it is undervalued rather than overvalued.
Key Takeaways
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The Mayer Multiple, a key Bitcoin price metric, is far from signaling an overheated market, despite BTC's proximity to all-time highs.
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The current Mayer Multiple of 1.1x suggests Bitcoin is undervalued, providing potential for further upward price movement.
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Many on-chain metrics, including a list of 30 "bull market peak" indicators from CoinGlass, continue to signal a "hold" position.
Bull Market Peak Projections
While the Mayer Multiple indicates continued potential, analysts are offering varying predictions for when the current bull run might reach its peak. A popular target emerging among traders and analysts, including Rekt Capital and Jelle, is October 2025. This projection is based on historical comparisons with previous halving cycles.
Some analysts, like CryptoCon, acknowledge that while some believe the cycle could extend into 2026 due to slower price action, most data points towards the cycle concluding by the end of 2025. The consensus leans towards October 2025 as a significant period for a potential cycle top, with some traders already beginning to take profits in anticipation.
On-Chain Indicators Remain Bullish
It's important to note that the Mayer Multiple is just one of many on-chain metrics. A comprehensive review of various indicators, such as the 30 "bull market peak" indicators tracked by CoinGlass, consistently shows a "hold" signal across the board. This collective data reinforces the idea that the current Bitcoin bull market still has considerable room to run before reaching its ultimate peak.
Sources
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Bitcoin Bull Run Has Room To Run, Mayer Multiple Hints, Cointelegraph.
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