Bitcoin a 'nice buy' at $47K despite macro dangers as key trendline nears — Research
Bitcoin (BTC) is attempting to reclaim a key long-term moving average, but the time to buy is before, not after, one metric hints.
In a series of tweets on March 29, on-chain monitoring resource Ecoinometrics eyed a classic entry for BTC/USD as flagged by the Mayer Multiple.
Bitcoin price strength has endured as the week gets underway, the largest cryptocurrency putting in its highest levels of 2022 overnight.
Some key moving averages have also fallen to bulls, and while the trend is not yet definitive, optimism is increasing that Bitcoin could even challenge November's all-time highs based on that fact.
Next in line, meanwhile, is the 200-day moving average (DMA), currently at $48,300 and just tapped in the past 24 hours. The 200DMA is a key component of the Mayer Multiple metric, which measures spot price ratio to it in order to determine potential profitable market entry points.
A score below 2.4 on the Multiple tends to signal good long-term rewards for investors. Having bottomed in January at around 0.76, its trend has reversed since, and as of Tuesday — almost right at the 200MA — Bitcoin has a Mayer Multiple score of 0.98.
"That's a good time to buy," Ecoinometrics argued in comments, adding that even if a breakout from the 200DMA ends up being a bull trap, losses in such situations have historically been "small."
"So even though the macro backdrop isn't looking good, this is a buy," a further post continued.
Those macro tensions, which include inflation and central banks' attempts to fight it with monetary policy tightening, remain a key topic of debate this month.
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