Indicator Overview

The Mayer Multiple Extensions indicator overlays Bitcoin’s historical price on a logarithmic scale with dynamic valuation bands derived from the 200-day simple moving average (SMA), extended by key multiples: 2.4× for overvalued conditions, 1.6× for the mid-line, and 0.8× for undervalued zones. These levels create visual envelopes around the SMA, with semi-transparent fills highlighting periods of overextension (red) or underextension (green), providing a clear representation of market deviations from long-term fair value. The 200-day SMA serves as the core trend anchor, while the multiples help map cycle highs and lows, enabling traders to contextualise current pricing within historical regimes.

How To Use

Overvalued signals emerge when Bitcoin’s price pierces the 2.4× band, indicating potential cycle peaks and heightened downside risk, whereas breaches below the 0.8× band suggest deep undervaluation and strong accumulation opportunities. The mid-line (1.6×) acts as a pivotal equilibrium, with crossings signalling shifts in market regime. Upward breaks may confirm bullish momentum, while downward ones warn of bearish pressure. Traders can utilise these bands to time entries during undervalued phases, scale out near overvalued extremes, and assess overall cycle maturity, enhancing risk management in volatile Bitcoin environments.