In the wake of the recent Bitcoin crash, market participants are closely monitoring the cryptocurrency’s potential to rebound or face further declines. On-chain analysis provider Lookonchain has shared insights into five key indicators that suggest Bitcoin may not have reached its peak in the current cycle.
According to Lookonchain’s analysis, the Bitcoin Rainbow Chart, Relative Strength Index (RSI), 200-Week Moving Average Heatmap, Cumulative Value Days Destroyed (CVDD), and 2-Year MA Multiplier all indicate that Bitcoin has room for growth. The Rainbow Chart suggests a potential top above $250,000, while the RSI at 75.56 implies that Bitcoin is not yet overbought compared to historical data.
The 200-Week Moving Average Heatmap shows a “blue” reading, indicating that Bitcoin has not reached the peak signals observed in previous cycles. Similarly, the CVDD metric suggests that Bitcoin is not in historically overbought territory. The 2-Year MA Multiplier also places Bitcoin in a mid-range position, further supporting the notion that the market cycle top may not have been reached.
While these indicators paint a bullish picture, it is crucial to consider the inherent volatility of the cryptocurrency market and the potential impact of macroeconomic factors. Traders and investors should exercise caution and conduct thorough research before making investment decisions.
At press time, Bitcoin traded at $99,419, showcasing its resilience in the face of the recent crash. As the market continues to digest the implications of the downturn, participants will closely monitor Bitcoin’s price action and on-chain metrics to gauge the cryptocurrency’s future trajectory.
Tags: Bitcoin, Bitcoin crash, on-chain analysis, market cycle, technical indicators
Source: https://www.newsbtc.com/bitcoin-news/after-bitcoin-crash-recover-or-drop-again/