Bitcoin (BTC) is trying to recover an important long-term moving average, but the time to buy is before, not after, the metric clue.

In a series of tweets on March 29, the network monitoring resource Ecoinometrics saw the classic BTC/USD entry as the Mayer Multiple flag.

Several Meyer approaches to the axis
Bitcoin’s price strength has been maintained throughout the week, with the largest cryptocurrency hitting a 2022 high overnight.

Some important moving averages have also returned to the bull side, and while the trend is not over yet, there is growing optimism that Bitcoin can challenge all-time highs in November based on this fact.

Meanwhile, next in line is the 200-day moving average (DMA), which is currently at $48,300 and has just dropped in the last 24 hours. The 200DMA is a key component of the Mayer Multiscale, which measures the spot price ratio to identify potentially profitable market entry points.

A multiplier score of less than 2.4 generally indicates a good long-term reward for investors. After bottoming in January around 0.76, the trend has since reversed, and since Tuesday – around the 200MA – Bitcoin has a Mayer multiple of 0.98.

“Now is the time to buy,” Ecoinometrics said in a commentary, adding that while the breakout of the 200-day moving average was in a bull trap, losses in such situations have historically been “small.”

Another post continued, “So while the overall background doesn’t look good, this is a buy.”

“When it comes to asymmetric returns strategies, you have to be methodical.”

Bitcoin Mayer multiple chart (screenshot). Source: BuyBitcoinWorldwide
Derivatives lose their speculative color
These macro-stresses, including inflation and attempts by central banks to fight it by tightening monetary policy, remain the main topic of discussion this month.

RELATED: Bullish Buying Pressure – 5 Things You Need to Know About Bitcoin This Week

As reported by Cointelegraph, several analysts warned that expectations could continue to turn against bitcoin and risky assets more broadly as prices rise and an “inflationary” environment emerges.

The feeling that BTC’s continued rally is impossible to form a new pattern is evident among professional traders as funding rates in the derivatives market remain flat despite a weekly gain of close to 20% for BTC/USD.

“There is currently no ultra-long biased speculation in the derivatives market,” analyst Dylan Leclerc said in a tweet on Monday.

Source: CoinTelegraph

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