A bitcoin price analysis tool shows that now is a good time for long-term investment
One of the most popular analytics indicators of Bitcoin shows that current price levels are very suitable for long-term investment. Meanwhile, long-term bitcoin holders are still reluctant to sell.
To Report Bitcoin Telegraph, Bitcoin has fallen so much in recent weeks that one of the most popular analytics tools available shows that its current price is very suitable for long-term investment.
Yesterday, the Mayer Multiple Index reached its lowest level since July 2021. July was the time when bitcoin started to jump from the $ 29,000 range.
The Mayer coefficient compares the current price of Bitcoin with its 200-day moving average. Its creator, Trace Mayer, believes that if this coefficient falls below 2.4, it could indicate a very profitable investment opportunity. In addition, the lower the number coefficient, the more likely it is that buying or investing will be more profitable and profitable in the long run.
The Mayer coefficient is one of the tools used to study the massive 2021 bitcoin reform. The index is currently 0.76 and has halved compared to November 2021 (November) when Bitcoin was at the peak of $ 69,000.
The Meyer coefficient is more often than 0.8 and has been 87% higher than its current level since 2011. Last week, Meyer’s decline also caught the attention of various social media users.
The interesting point in the picture above is the peak of November. Although the price of Bitcoin reached a record high of $ 69,000 in November, the Mayer coefficient only rose to its all-time average of 1.42. In previous peaks, however, the Meyer coefficient was higher than this figure.
The latest status of long-term bitcoin holders
Current bitcoin investors are determined to raise their capital. Although the price of bitcoin is much lower than the same time in 2021, the number of intact units that have been purchased for a year or more is gradually increasing.
Glassnode wrote on Twitter yesterday:
The share of Bitcoin units that have not been traded for more than a year has reached its 14-month high of 60.998%.
Given the small share of small investors in the market, analysts say the current situation is something that has been largely dictated by makers.
Mignolet, an analyst at CryptoQuant, said:
The volume of Bitcoin Taker orders peaked in May last year and has been declining ever since. For a year now, Bitcoin has been moving contrary to the expectations of traders and analysts, and the amount of liquidity has decreased. New deposits and investments continue to decline.
A market trader is a trader who makes a purchase or sale at the current price and does not place his order in a limited way at prices different from the current market price.
Also read: Who are the Makers and Takers in the market?