Bitcoin’s recent turbulence has left traders questioning whether the market leader has already peaked - but one analyst believes the rally still has room to run.

According to Frank Petter of Eave Capital Management, Bitcoin (BTC) could climb to $180,000 before showing signs of being overbought, based on signals from the Mayer Multiple, a key long-term valuation metric.

Still Far From Overbought

Petter explained that the Mayer Multiple, which compares Bitcoin’s current price to its 200-day moving average, currently sits around 1.16 – far from the 2.4 level typically associated with overbought conditions. “The setup looks strong,” he said, suggesting BTC could extend its rally before hitting that threshold.

At the lower end, the index’s 0.8 zone is often considered oversold, meaning Bitcoin is still closer to undervaluation than excessive optimism. Petter’s analysis implies that prices could rise another 50% or more before reaching those historical extremes.

Momentum Still Intact

This interpretation aligns with a previous note from analyst Axel Adler Jr., who said in July that Mayer Multiple readings near 1.1 often serve as “a fuel reserve” for renewed bullish momentum.

While the long-term signal remains positive, short-term volatility persists. Several traders warn that renewed selling pressure could push BTC below $114,000 in the coming weeks before a potential rebound.

A Critical Stretch for Bitcoin

Bitcoin’s oscillation between sharp rallies and sudden corrections has kept markets on edge throughout the fourth quarter. However, analysts like Petter argue that unless the Mayer Multiple climbs above 2.4, the broader cycle still favors accumulation rather than exhaustion.

At press time, Bitcoin trades near $120,000, consolidating after last week’s swings – with bulls and bears both waiting for the next decisive move.