Bitcoin Faces “Darkest Days” After Key Indicator Hits 4-Year Low

Bitcoin's Mayer Multiple hits 0.65, signaling capitulation like May 2022, with $40k-$50k targets possible.

  • Bitcoin‘s Mayer Multiple indicator has plunged to 0.65, a level last seen during the deep bear market bottom in May 2022.
  • Analysts warn the indicator suggests Bitcoin is in a “darkest days” period of capitulation, which can last for months before a price floor is found.
  • If the current correction mirrors 2022, Bitcoin’s price could potentially drop further, with targets around $50,000 or even as low as $40,000.

Bitcoin is facing one of its most severe bear market corrections in years, according to Glassnode data, after its Mayer Multiple indicator hit a nearly four-year low. The classic metric, which compares price to the 200-day moving average, fell to 0.65 this week, signaling deep discount territory similar to the market’s bottom phase in mid-2022.

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In a post on X, analyst On-Chain College stated that this level is “usually reserved for deep bear market corrections.” Consequently, historical data suggests Bitcoin can remain under pressure for months despite entering this statistically oversold zone. Analyst CryptosRus noted the extreme reading, saying, “This doesn’t happen during normal pullbacks.”

However, such extreme lows have historically presented significant long-term buying opportunities. Analyst On-Chain Mind remarked, “Historically, being below this level is exactly where I want to be stacking.” Meanwhile, the debate continues over where the ultimate bottom will form.

Analysts point to key technical levels like the 200-week moving average near $58,000 as potential support. In a more extreme scenario mirroring 2022, analyst Jelle suggested the price could target the lower $50,000s. This echoes broader speculation that the real market bottom may not yet be in.

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