According to the Golden Ratio Multiplier (GRM) metric BTC/USD reclaimed an essential support zone for securing further upside.
GRM is a long-term observational metric for Bitcoin price action. It is used to determine whether Bitcoin price growth is overstretched relative to its overall maturity as an asset in terms of adoption.
It does so using a log scale, which comprises Bitcoin’s 350-day moving average (DMA) and Fibonacci sequences to give multiples of that trendline.
As such, BTC/USD dropping below the 350DMA is a now conspicuous sign of outlier price action, as the vast majority of days have been spent above it since mid-2019.
The Golden Ratio Multiplier is an effective tool because it is able to demonstrate when the market is likely overstretched within the context of Bitcoin’s adoption curve growth and market cycles.
