Bitcoin (BTC), the leading cryptocurrency, has been spooking investors with recent spikes and drops. Speculation about BTC’s future continues to rise, but so too does speculation that BTC has reached its peak.
However, one analyst said that BTC has not yet peaked and could reach $180,000 before reaching overbought levels.
Frank Petter, an analyst at Eve Capital Management, said Bitcoin could rise to $180,000 before entering an overbought phase.
At the moment, analysts studying the Mayer Multiple Index say that the index is currently closer to oversold levels than overbought.
The analyst noted that the Mayer multiple index is currently 1.16, closer to the oversold level of 0.8 than the overbought level of 2.4.
He said the indicator needs to reach the 2.4 level to indicate overbought conditions, which would mean BTC reaching $180,000.
“We like the setup. The chart suggests BTC/USD will rise to $180,000 and reach 2.4.”
The Mayer Multiple compares BTC’s current price to its 200-day moving average, and a value below 2.4 is often considered a buy signal.
Back in July of this year, another crypto analyst, Axel Adler Jr., also said that readings of multiples close to 1.1 are seen as “enough fuel for renewed bullish momentum.”
However, some analysts point out that increased price volatility in the short term could lead to a 10% decline and BTC below $114,000.
*This is not investment advice.
