Bitcoin ($BTC) has again entered a crucial territory this weekend, showing signals of deep capitulation. Specifically, the Mayer Multiple indicator of Bitcoin ($BTC) has plunged to 0.6, highlighting that the flagship crypto asset is trading up to 40% below the 200-day moving average thereof. As per the data from CryptoQuant, this rare development differs from typical corrections. Hence, it reportedly marks a full-blown capitulation phase.
Bitcoin’s Mayer Multiple Sits at 0.6, Highlights Historic Capitulation
With the massive dip in Bitcoin’s Mayer Multiple, which, as of Saturday, is hovering around 0.6 points, the leading cryptocurrency is almost 40% lower than its 200-day moving average. Thus, the market onlookers deem it a sign of comprehensive capitulation. Formerly, such large-scale discounts have paralleled key market bottoms.
The respective instances include bearish trough of December 2018, COVID crash of March 2020, and FTX fallout of November 2022. At the moment, Bitcoin ($BTC) is potentially facing the same situation. So, there is a possibility of a notable market shift in the near term as the market participants are speculating on a bottom.
Capitulation Triggers Hope for Trend Reversal
At the same time, Bitcoin ($BTC) is trading at $69,198.65 , indicating a 2.27% price drop over the past twenty-four hours. Additionally, its market capitalization is 2.16% dwon at $1.38T. Moreover, the weekly and monthly performances of $BTC show 12.16% and 23.94% plunges.
However, the latest capitulation has increased hope among the market participants. This may drive a shift in the risk and reward toward disciplined accumulation. Overall, while fear is overwhelming the market, Bitcoin ($BTC) could be nearing a bottom for a massive tree.
