Popular cryptocurrency figure Trace Mayer believes that Bitcoin's recent price gains may have peaked, at least in the medium term. Using his self-created Mayer Multiple, the Bitcoin maximalist this morning tweeted that there was very little chance of Bitcoin hitting $40k in the next couple of months.
Bitcoin momentum could slow in the days ahead. Source: Twitter.
The Mayer Multiple retrospectively tracks the boom and bust cycles of Bitcoin to give some indication of fair value. Consider it the speed at which Bitcoin's price moves away from its 200 day moving average (DMA). When price moves too far too fast, the likelihood of a correction is just around the corner.
Slow and Steady Wins the Bitcoin Price Race
Bitcoin's insane momentum has driven the price up 200% in six short months. The following chart shows Bitcoin's wide deviation from its 200 DMA since April: