So if you&#8217;re feeling the pressure from Revolut on your fintech business in 
Europe, I strongly advise taking a serious look at the crypto-finance market

Crypto is Europe’s best answer to Revolut’s fintech dominance | Opinion

Ethereum price could be preparing a strong rebound after forming a giant 
hammer candle and confirming the inverted head-and-shoulders chart pattern as 
the staking queue jumps to a record high. Ethereum (ETH) token was trading at 
$2,080, up sharply from…

Ethereum price confirms inverted H&S as staking queue soars

Recent on-chain data shows that the Bitcoin price is currently at an important 
phase, raising suspicions as to whether the market is nearing a cyclical 
bottom. Mayer Multiple Falls To 0.6 — What This Means In a recent Quicktake 
post on the CryptoQuant platform, on-chain analyst Ruga Research pointed out 
that the Bitcoin price now has a 40% negative deviation from its 200-day 
moving average. This on-chain observation revolves around the Bitcoin Mayer 
Multiple. Related Reading: Bitcoin Drifts Into A Deep Conviction Zone, Smart 
Money Stays Patient For context, the Mayer Multiple metric tracks how far a 
coin&#8217;s current price is trading above or below its long-term trend. This 
indicator is able to achieve this by dividing the price by its 200-day moving 
average. When the metric shows a reading of 1, it typically means that the 
Bitcoin price is trading approximately at the 200-day MA. Meanwhile, readings 
above 1 reflect that the Bitcoin price is at a premium relative to its long- 
term trend, while readings below 1 suggest that the price is trading at a 
discount. Historically, the metric has several thresholds in tandem with 
market conditions. For example, when the metric reaches levels above 2.4, it 
often signals that the Bitcoin price is at an overbought zone (also known as 
the bubble territory). As explained earlier, 1 &#8211; 1.5 represents the normal 
bull-market range, while 0.8 &#8211; 1.0 is typically the discount zone (where 
accumulation often occurs). Notably, when the price falls to regions below 
0.8, it signals that the Bitcoin price has been oversold, as a result of 
capitulation events. Ruga Research revealed that the metric is currently at 
0.6, reflecting an approximate 40% deviation below Bitcoin&#8217;s long-term trend. 
Hence, it is apparent that the Bitcoin price stands at a statistical extreme. 
Historical data where the Mayer Multiple fell to similar levels also adds 
credibility to this level&#8217;s relevance. In December 2018, the metric dropped to 
the 0.5 &#8211; 0.6 range (near Bitcoin&#8217;s market bottom around $3,200) before the 
price witnessed a more than 540% growth. Similarly, the metric fell to 0.5 
owing to the COVID crash, followed by a recovery and expansion of the Bitcoin 
price by 1,100% in another 12-month period. This scenario also repeated in 
November 2022, with the Mayer Multiple falling to the same region, after which 
the BTC price soared by over 170%. However, Ruga Research mentioned, as a 
caveat, that the metric does not precisely spot where and when a bottom will 
form, but merely reveals what to expect in the long-term. It is also possible 
that the metric could record further downside moves or see some consolidation 
before going to the upside. Bitcoin Price At A Glance As of this writing, 
Bitcoin is worth approximately $70,383, reflecting an over 2% jump in the past 
24 hours. Related Reading: Coinbase Premium Turns Positive Since Mid-January 
As Bitcoin Sees Price Relief Featured image from iStock, chart from 
TradingView

Bitcoin Is Trading 40% Beneath Its 200-Day MA — What’s Next?

Analysts forecast Block to post $403 million in Q4 profit on $6.25 billion 
revenue, following a third quarter marked by strong gross profit growth but 
mixed market reaction.

Jack Dorsey’s Block may cut up to 10% of staff in business overhaul: Report

Since reaching its current all-time-high price of $126,000 in October last 
year, the Bitcoin market has been on a sell-off, translating into surmounting 
bear pressure. As a result, the flagship cryptocurrency has maintained a 
steady decline, falling until it recently reached $60,000 — a deviation of 
more than 52% from its all-time high. Bitcoin currently seems to be seeing a 
rebound, but price action alone reflects that it could as well be one of its 
short-term recoveries. Interestingly, a recent on-chain evaluation suggests 
that the current upward movement may be driven by a significant underlying 
metric. Related Reading: Bitcoin Taker Buy Ratio Signals Peak Bearish 
Sentiment — Relief Soon? What The Bitcoin Sharpe Ratio Is Saying In a 
Quicktake post on CryptoQuant, Darkfost reveals that the Bitcoin Sharpe Ratio 
is now at a zone historically relevant to the ends of bear markets. The Sharpe 
Ratio is a risk-adjusted performance metric that measures how much return an 
asset (Bitcoin, in this case) generates for risk taken. A high ratio signals 
that returns are strong in relation to risks taken; a declining ratio, on the 
other hand, reflects weakening returns, while risk remains elevated. On the 
severe end of the metric, a very low or negative Sharpe Ratio is a sign that 
market participants are taking very high risks for poor or negative returns. 
It is worth noting that very low Sharpe ratios are frequently seen during deep 
bear markets or even capitulation phases. According to historical data, 
Darkfost explains that the Sharpe Ratio is currently at a level so low as to 
be reminiscent of the final phases of past bear markets. This means that the 
Bitcoin price holds a higher practical risk, compared to returns, for current 
investors. Notably, the Sharpe ratio is not just at a low point, but continues 
in a steady state of decline. This, according to the market quant, is a sign 
that Bitcoin&#8217;s performance is yet to be attractive to any willing risk-taker. 
However, it is this specific dynamic that sets the pace for a turnaround in 
Bitcoin’s price. This is because sustained poor returns typically force 
capitulation events, where weaker hands are flushed out; this eventually sets 
the stage for renewed accumulation among stronger hands. Related Reading: 
Forget A Bitcoin Yearly Top, BTC Price Might Have Hit A 16-Year Cyclical Peak 
Two Main Approaches To Consider In This Scenario: Analyst Seeing as the 
current market condition is still mostly uncertain, Darkfost offers two ways 
to engage the current scenario. First, the analyst states that investors could 
begin increasing exposure gradually, and in line with the ratio’s movement 
towards lower risk zones. Second, Darkfost explains that a market participant 
could decide to wait for clear improvements in the Sharpe Ratio before 
entering the market at all. This is to serve as a confirmation strategy for 
the purpose of investor safety. However, Darkfost notes that the present bear 
phase could last a couple more months before any true reversal is seen, 
regardless of the signal being flashed by the Sharpe Ratio. As of this 
writing, Bitcoin stands at a $69,064 valuation. CoinMarketCap data reflects a 
1.71% loss over the past day. Featured image from Unsplash, chart from 
Tradingview

Cryptocurrency price in AUD