It wasn’t all rosy last week, but the digital asset market responded quite well to the start of the up-to-date Donald Trump administration. Bitcoin’s price in particular has been able to weather the volatile storm that has overshadowed the cryptocurrency market over the past few days.

While the major cryptocurrency may have slowed down in recent days, the latest on-chain observations show that BTC is likely to continue its upward movement. Here’s how the token’s price could be poised for another surge in the coming weeks.

Is there room for BTC prices to escalate further?

In a January 24 post on Platform X, market research company Glassnode explained that Bitcoin’s price has not yet overheated and still has the potential to rise further over the next few weeks. This on-chain discovery is based on the Mayer Multiple Index, which is calculated as the ratio of an asset’s price to its 200-day moving average (200DMA).

Mayer Multiple measures the distance of Bitcoin’s price from its long-term average to estimate overbought and oversold conditions. This metric is also used to determine bull or bear macro trends when analyzing cyclical price movements.

Historically, the Mayer Multiple signals an overbought market and a potential price top when its value exceeds 2.4. On the other hand, a Mayer multiple value below 0.8 suggests an oversold situation and that the market may be bottoming out.

Source: Glassnode

According to Glassnode data, Bitcoin’s Mayer Multiple value is 1.37, which indicates that the leading cryptocurrency is still quite far from overbought territory. This information suggests that BTC still has room to grow further this cycle. Moreover, Bitcoin price is at least 35% above its 200-day moving average, which is a bullish signal.

Glassnode emphasized that Bitcoin’s price would need to rise above $180,000 for it to become overbought. This price level represents a potential high for the flagship cryptocurrency in the current cycle and may be followed by a trend reversal. With an oversold threshold of 0.8, Mayer Multiple places the lowest price for Bitcoin at around $60,000.

Bitcoin’s price hasn’t been particularly impressive since breaching the $100,000 mark, leading to cries of the highest price on the market. This indicator provides some insight into the major cryptocurrency’s potential development path over the next few months.

Bitcoin price at a glance

At the time of writing, Bitcoin is trading at just under $105,000, which does not reflect any significant movement over the past day.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView