The price of Bitcoin experienced two major crashes in August. But what’s ahead for it? Here’s what top indicators say about its potential price in September.
1/ The price of #Bitcoin experienced two major crashes in August!Will it keep dropping or bounce back from the bottom?Let's use 5 indicators to decide whether to escape from the #Bitcoin top. pic.twitter.com/C3DjDzFWCx
— Lookonchain (@lookonchain) August 29, 2024
A long-term valuation technique based on a logarithmic growth curve, the Bitcoin Rainbow Chart, continues to suggest that Bitcoin is still undervalued. According to the latest data by LookOnChain, the market has yet to reach its peak, signalling the potential for future price growth.
RSI
Furthermore, the current value of the Relative Strength Index (RSI), a momentum oscillator that measures the magnitude and speed of the market move, is 61.87. When the RSI is above 70, it indicates that Bitcoin has reached saturation and is soon going to collapse in terms of its price. When it is below 30, it is oversold and could be poised for an increase.
200-Week Moving Average Heatmap
In addition, a blue signal can be observed on the 200-week Moving Average Heatmap, a long-term trend indicator that shows the average price of Bitcoin over the last 200 weeks. This color has historically indicated that the price of Bitcoin is not at its highest point and could rise further. .
Cumulative Value Coin Days Destroyed (CVDD)
Similarly, Bitcoin is still affordable according to the Cumulative Value of Coin Days Destroyed (CVDD), which tracks the total number of days that coins are kept before being consumed. Price approaches the CVDD chart’s green line, which frequently shows a favourable moment to make a purchase. The current CVDD reading encourages buying and supports the idea that the market is not on the brink of fall.
Despite the challenges posed by increased competition and fluctuating prices, the current market environment and strategic whale movements suggest that opportunities for profitability in Bitcoin may still exist.
