A crypto strategist believes that Bitcoin (BTC) and Ethereum (ETH) have more room to run to the upside this cycle before the markets take a bearish turn.
Trader Ali Martinez tells his 120,000 followers on the social media platform X that he’s looking at Bitcoin’s Mayer Multiple to time BTC’s market top.
The Mayer Multiple is a technical tool that measures the difference between the current price of BTC and the 200-day moving average to determine if Bitcoin is overbought or oversold.
According to Martinez, the technical indicator has been spot on in the past in marking Bitcoin’s bull market top.
“Historically, the Mayer Multiple has identified Bitcoin overbought conditions when BTC trades above the 2.4 oscillator. Every market top has occurred above this level.
Right now, the 2.4 level sits near $182,000, suggesting BTC still has room to grow.”
At time of writing, Bitcoin is trading for $98,772.
As for Ethereum, Martinez says he’s keeping a close watch on ETH’s market value to realized value (MVRV) pricing band, an on-chain metric used for gauging whether an asset is witnessing extreme levels of unrealized profits or loss. When the MVRV pricing band is hovering above 2.4 for about 6% of trading days, it suggests an increased likelihood of investor profit-taking that could mark a cycle top.
Says Martinez,
“In every bullish cycle, Ethereum ETH has surpassed the 3.2 MVRV Pricing Band. Currently, this level stands at $6,770!”
At time of writing, ETH is trading for $3,072.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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