Nicholas Merten: Market Signals Are Pointing Towards Bitcoin Rally

According to a top crypto market analyst, Nicholas Merten, one specific price model flags signals that Bitcoin (BTC) is currently oversold and could soar in price.

In a recent video update, the analyst shared with his 511,000 YouTube subscribers he is keeping a close eye on Mayer Multiple, which is the multiple of the current Bitcoin price over the 200-day moving average.

The Mayer Multiple was created by Trace Mayer as a way to analyze the price of Bitcoin in a historical context, and it is often viewed as one of the more critical moving averages amongst high-timeframe traders.

Merten notes that the Mayer Multiple is currently strong, which he believes could mean that BTC is preparing for a rally.

“When we’re below the green line, that’s usually a time or an indicator that price is oversold and that it’s a time to get bullish on Bitcoin. Not only due to the fact that price not only tends to trend higher afterward in the short term but really over the next foreseeing months, it’s likely that after it dips below the green zone after it is set to go up towards the pink band where generally markets are overbought and it might be time to start looking to take profits or chips off the table so to speak.”

The analyst points out that throughout the recent history of BTC, the Mayer Multiple been a reliable indicator for calling the bottom of a bearish trend. An example of this is Bitcoin’s price reversal in July 2021 and the pandemic-induced market correction in March 2020.

“We can see here now that price has had a healthy correction back down below this green range here in February of this year. And it’s very similar to what we saw back here in July of 2021 right before prices started to spring higher.

On top of that as well, we’ve seen this not just here within the past couple of months holding relevancy but… holding relevancy back here during the March (2020) correction where price had pulled back extensively due to the pandemic.”