Mayer Multiple

Definition ∞ The Mayer Multiple is a technical analysis indicator used to assess Bitcoin’s price relative to its 200-day moving average. It is calculated by dividing the current Bitcoin price by its 200-day simple moving average. A value above 2.4 typically suggests an overbought condition, historically indicating a good time to sell, while values below 1.0 indicate an oversold condition. This metric helps investors gauge whether Bitcoin is currently trading at an unsustainable premium or discount.
Context ∞ The Mayer Multiple is a widely referenced tool in cryptocurrency market analysis, often appearing in news and discussions about Bitcoin’s valuation and market cycles. Traders utilize this indicator to inform long-term investment strategies and identify potential entry or exit points. Its historical effectiveness is frequently debated, but it remains a popular metric for understanding Bitcoin’s price momentum.