Woobull Charts
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Introduced by Trace Mayer as a way to gauge the current price of Bitcoin against its long range historical price movements (200 day moving average), the Mayer Multiple highlights when Bitcoin is overbought or oversold in the context of longer time frames.
It`s worth noting as the market becomes larger and less volatile, the peaks are becoming less exaggerated. This is because a 200 day moving average baseline is a static yardstick against an ever growing, more stable, Bitcoin market. We should recalibrate what consitutes the overbought/oversold extremes on this chart accordingly.
Until now this chart has been displayed on a linear vertical axis, I created this chart as it`s important to have it plotted on a log chart to remove the visual skewing. (i.e. 10% above and 10% below the baseline should be visually the same distance).
The Mayer Multiple is calculated by dividing the Bitcoin Price by the 200 day moving average of the price