To predict the next maximum of the stock market — a favorite activity of almost all financial analysts. One of them even published their own tool, which is supposed to predict a new historical maximum and the beginning of the next bullish trend of Bitcoin. The formula for calculating this level is quite simple and is called the “multiplier Mayer”.
How it works
A special indicator was developed by Trace Mayer, known kryptonitetm and a frequent guest of the podcast about Bitcoin. Calculated the multiplier Meyer is quite simple — by dividing the market price of Bitcoin on the value of the moving average 200 MA scale 1-day chart.
In technical analysis, the position of the asset relative to the line MA is considered to be one of the determining factors of its further movement. In other words, if Bitcoin is below the moving average, it is likely to continue to fall, and if it is above to grow.
With a multiplier of Mayer, you can even specify a strong overbought currency. On the chart Bitcoin indicator shows the beginning of each bubble and the subsequent decline of the asset.
The multiplier ranges from zero to infinity (in theory), but of particular importance are only two levels — 1 and 2. Here everything is simple: if the indicator value is below one, then the bitcoin is falling because the price located below the 200 MA. The result is in the range from 1 to 2 indicates the healthy growth of Bitcoin.
Finally, the third option — multiplier Meier equal to or greater than two. In this case, it is also possible to observe the growth, but he is already talking about the formation of a bubble in the market.
Indicator values can be displayed graphically as shown in the screenshot above. Now it is less than one, so Bitcoin still in a bearish trend. Not to miss the beginning of the next bullrun, be sure to subscribe to our cryptcat.
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