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While selling pressure for Bitcoin has clearly continued to fall in recent weeks, BTC has scarcely gained up any speed in the markets. It was still under $34,000 at the time of publication and has not been able to test the $36,000 mark since June 29th. The sideways trend has continued to dominate its price charts, while several Altcoins have had varied results in recent days.
However, crucial indicators continue to rise, indicating that traders are becoming less concerned about increased selling pressure for Bitcoin.
Bitcoin Circulation dropped to levels of October 2015
According to Santiment, Bitcoin’s circulation has dropped down to levels last noticed during October 2015. At press time, the circulation number has dropped down to 1.18 million after recording a high of 3.06 million in January 2021.
Circulation is now defined as the number of times a specific BTC token has been moved or traded on a daily basis. It’s also worth noting that if a token is moved 5 times in a day, it counts as one token circulation and 5 times in terms of transaction volume.
The major conclusion that can be made from falling circulation is that traders have stayed dormant over the last several weeks, which corresponds to lower sell pressure. Drawing parallels with another important signal may help rookie traders better evaluate the situation at press time.
What does Mayer Multiple suggest?
Now, Mayer Multiple was established to assess BTC’s price in relation to historical movement, and it has been discovered throughout time that Bitcoin accumulated while Mayer Multiple was less than 2.4 proved profitable. The multiple was 0.75 at press time, and according to statistics, the Mayer Multiple has been greater than today 87 percent of the time.
The Mayer Multiple Bands now suggested a stronger prognosis in terms of market reversibility.
If the price movement is rigorously followed, it is currently in the negative zone, and BTC has always rebounded back from this range over the last four occasions. However, another important conclusion that can be taken is that anytime the stock has dipped below the bearish range, it has reached the oversold area. Bitcoin’s oversold area is presently around $25,000, suggesting that BTC may yet correct in the near future.
However, these studies should be taken with a grain of salt because numerous other factors play a significant influence in BTC’s recovery. A correction should not be expected purely on the basis of MM, but its observations should not be overlooked.