Bitcoin is experiencing a downturn as large holders on the well-known crypto platform Bitfinex have reduced their long positions, as reported by Lookonchain, a renowned analytics provider. The platform shared the current market status on its official X account.
Lookonchain took to social media to share insights on 5 key indicators to determine if it’s time to steer clear of the $BTC peak. Among these indicators is the Rainbow Chart, which functions as a tool for long-term valuation. Utilizing a logarithmic growth curve, it predicts the future price direction of Bitcoin.
According to Lookonchain, the Rainbow Chart is currently displaying positive signs, suggesting that now is still a good time to invest in $BTC. The analytics firm also highlighted the relative strength index chart, pointing out two significant levels. A level below 70 indicates that Bitcoin is overbought, potentially leading to a drop, while a level above 30 suggests that Bitcoin is oversold, possibly resulting in a rise. The current RSI indicator is around 69.93, compared to past data.
Comparing the current data with historical statistics, Lookonchain suggests that Bitcoin has not yet reached its peak. The platform also discussed the 200 Week Moving Average Heatmap chart, indicating that the current price level is still below its peak, providing an opportunity for purchasing and holding BTC.
The Cumulative Value Coin Days Destroyed indicator highlights that when the token hits the green line, its price becomes undervalued, signaling a good buying opportunity. This indicator, along with the 2-Year MA Multiplier, suggests that Bitcoin has not yet reached its peak, as it has not crossed the red line.
Tags: BTC
