A crypto strategist believes Bitcoin (BTC) and Ethereum (ETH) still have room to grow before facing a downturn. Trader Ali Martinez, who has 120,000 followers on X, is using Bitcoin’s Mayer Multiple to help identify BTC’s market peak.
The Mayer Multiple is a handy tool. It compares Bitcoin’s current price to its 200-day moving average. This helps determine if Bitcoin is overbought or oversold. Martinez points out that this indicator has been reliable in marking the peaks of Bitcoin’s bull markets.
He says, “Historically, the Mayer Multiple has identified Bitcoin overbought conditions when BTC trades above 2.4. Every market top has occurred above this level. Right now, the 2.4 level sits near $182,000, suggesting BTC still has room to grow.”
As of now, Bitcoin is priced at $98,772.
When it comes to Ethereum, Martinez is keeping a close eye on its market value to realized value (MVRV) pricing band. This on-chain metric shows whether an asset is experiencing extreme unrealized profits or losses. If the MVRV pricing band stays above 2.4 for about 6% of trading days, it signals a higher chance of profit-taking by investors. This could indicate a market peak.
Martinez adds, “In every bullish cycle, Ethereum (ETH) has surpassed the 3.2 MVRV Pricing Band. Currently, this level stands at $6,770!”
At the moment, Ethereum is trading at $3,072.