Key Points
- The Mayer Multiple indicates potential for an upward move in Bitcoin’s price.
- Korean investors’ increased buying activity contributes to Bitcoin’s price action.
Bitcoin’s Potential for Price Increase
Bitcoin [BTC] was valued at $95,646 at the time of writing, a 7.89% decrease from its high last week. Despite a daily decline of 0.52%, selling pressure appears to have lessened, potentially paving the way for additional gains.
The recent pullback to the $90,000 range aligns with Bitcoin’s overall bullish trajectory, with the asset poised for a move toward higher levels.
Bitcoin’s Projected Rally
Analyst Ali Charts suggests that Bitcoin remains on a bullish trajectory despite its recent price decline. The current price correction is seen as part of a larger market structure that could propel the cryptocurrency to the $168,000 region, a potential peak determined using the Mayer Multiple (MM).
The Mayer Multiple, an indicator available on Glassnode, calculates potential market tops and bottoms by dividing BTC’s current price by its 200-day moving average. According to this metric, the market’s potential top is indicated at an MM of 2.4, corresponding to approximately $168,494, while the bottom is defined at 0.8 MM, or $56,141.
The Mayer Multiple, currently at 1.3, reflects a fair valuation for BTC but does not directly dictate market direction. However, with room to climb toward the MM peak of 2.4, BTC could rally to $168,494, a level that would place it in overvalued territory.
Institutional Investors and Bitcoin
Institutional and large-scale investors are playing a significant role in maintaining Bitcoin’s price range. Recent data highlights a surge in interest from these entities as the cryptocurrency regains popularity.
According to CryptoQuant, this group has significantly increased its share of Bitcoin’s Known Entities Cap Table, rising from 14% last year to 31% at the time of reporting. If this buying trend continues, it could positively impact Bitcoin’s trajectory by further cementing its position in mainstream financial markets.
Korean Investors and Bitcoin
In the last 24 hours, Korean investors have shown a major surge in BTC buying activity, with a spike last seen in August. The current reading of the Korean Premium Index has climbed to 5.26, up from a negative 0.37 on December 15.
This level of heightened buying activity indicates ongoing accumulation, which could soon reflect in BTC’s price, potentially driving it higher in upcoming trading sessions.
In contrast, U.S. investors have shown reduced interest, as indicated by a decline in the Coinbase Premium Index. The index remains in negative territory at -0.1035, a sign of a slowdown in buying activity.
Similarly, the Fund Market Premium Index, which tracks institutional Bitcoin buying and selling, mirrors this bearish sentiment. It currently stands at -0.759, reinforcing the decline in institutional demand.
If U.S. and institutional investors return to buying, their participation—combined with the bullish momentum from Korean investors—could push Bitcoin’s price upward to the $100,000 region.
