Bitcoin Soars 150% in 2022 But Indicators Suggest More Room to Run
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Bitcoin has surged 150% in 2022, outpacing traditional assets. Some investors may anticipate a price slide due to cognitive biases like anchoring.
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Indicators like Puell Multiple (currently 1.53), MVRV Z-score (1.6), and Mayer Multiple (1.404) suggest bitcoin is far from overvalued.
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Puell Multiple below 4 and MVRV Z-score below 8 typically signal bitcoin is not overheated. Mayer Multiple above 2.4 flags overbought conditions.
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Puell Multiple could fall near 0.5 after bitcoin's mining reward halving in March 2024, suggesting potential market bottom.
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Bitcoin's current price is 1.4 times its 200-day moving average per the Mayer Multiple. Values below 0.5 or above 2.4 hint at extreme oversold/overbought conditions.