Techanalyst: the market is overheated, so bitcoin is unlikely to soon reach $ 40,000

The investor and creator of the Mayer Multiple indicator Trace Mayer came to the conclusion that the first cryptocurrency is now very overbought, therefore a price correction is very likely in the near future.

Overextended bull markets loved until correction. 2.09x @TIPMayerMultple , $ 5,085 $ BTC 200DMA rising ~ $ 35 / day. Historically higher only 14.79%. Thus, the very low probability of $ 40k in a few months.

But with #Bitcoin ; anything can happen! ? ? @TuurDemeester @PrestonPysh @ToneVays pic.twitter.com/UgX4rkRG0H

– Trace Mayer (@TraceMayer) 24 June 2019 p.

According to him, the 200-day moving average (DMA), perceived by many investors as a kind of border between the bullish and bearish markets, is currently passing through the $ 5085 mark. Thus, the current spot price of BTC is more than twice the average value, to which it is long-term.

Mayer also notes that amid a clearly bull market, DMA is growing by only $ 35 per day. At the same time, the current value of the Mayer Multiple is at the level of 2.09x, that is, in the overbought area. At such high values, this indicator was only 14.79% of the time in the entire history of observations.

Considering all this, Meyer came to the conclusion that a bitcoin correction is very likely in the near future, as a result of which his price will become somewhat closer to fair value.

“Thus, the likelihood of reaching $ 40,000 over several months is very low. However, there can be anything with Bitcoin! ” , The expert summarizes.

Anyway, according to the table attached to the tweet, already in September Bitcoin could reach $ 15,000, and in December – $ 21,000. In June 2020, Meyer is sure that digital gold will overcome the $ 30,000 mark.

Earlier, BlockchainJournal published an article on how to find oversold and overbought zones using the Mayer Multiple indicator.

Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.