According to Odaily, recent market analysis by Lookonchain highlights five key indicators to assess whether Bitcoin has reached its peak. These indicators provide insights into the current valuation and potential future movements of Bitcoin (BTC). Here are the details of each indicator:
The Rainbow Chart is a long-term valuation tool that uses logarithmic growth curves to predict BTC's potential future price trends. The new Bitcoin Rainbow2023 chart indicates that BTC is still relatively inexpensive.
The Relative Strength Index (RSI) is another crucial indicator. An RSI value of 70 or above suggests that BTC is overbought and may soon decline, while a value of 30 or below indicates that BTC is oversold and may soon rise. Currently, the RSI stands at 61.87, suggesting that BTC has not yet reached its peak compared to previous data.
The 200-Week Moving Average Heatmap shows the current price point as blue, indicating that the price peak has not yet been reached. This suggests that it is a good time to hold and buy BTC.
The Cumulative Value Days Destroyed (CVDD) metric shows that when BTC's price touches the green line, it is undervalued, indicating a good buying opportunity. The current CVDD suggests that BTC's peak has not yet been reached.
Lastly, the Yearly Moving Average Multiplier shows BTC's price between the red and green lines. Since it has not yet touched the red line, it indicates that the market has not peaked.
These indicators collectively suggest that Bitcoin has not yet reached its peak, providing a favorable outlook for potential investors.
