Indicator Overview

The Mayer Multiple Oscillator indicator computes Bitcoin’s price relative to its 200-day simple moving average (SMA), producing a smoothed oscillator that ranges typically from near 0 during deep bear markets to above 4 during extreme bull runs. It applies a fixed 3-day smoothing to the raw multiple for clearer trend visualisation, with the line coloured on a gradient from dark green (low multiples indicating undervaluation) to light green (high multiples signalling overextension). This provides a dynamic measure of market deviation from long-term fair value, helping identify cycle phases and potential reversals. The Bitcoin price is overlaid on a secondary logarithmic axis for direct comparison between absolute levels and relative valuation.

How To Use

Elevated readings above 2.4 signal overvalued conditions and potential cycle tops, while values below 0.8 indicate undervalued regimes and strong accumulation zones. Traders monitor crossings of the 1.6 midpoint for regime shifts, upward breaks may confirm bullish momentum, downward ones suggest increasing bearish pressure. Use persistent clustering in the upper gradient (light green) to anticipate corrections or euphoria-driven blow-offs, and lower bands (dark green) for contrarian buying during capitulation. The oscillator excels at contextualising Bitcoin’s volatility within historical cycles, aiding in position sizing and risk assessment for long-term holders and cycle-aware investors.