Despite recent price dips, Bitcoin may not have hit its peak yet, according to on-chain analytics platform Lookonchain. The platform examined five key indicators to assess Bitcoin’s current market position, suggesting a potential for further growth.
One of the positive indicators is the Bitcoin Rainbow Chart, a long-term valuation tool using logarithmic growth curves. This chart suggests potential for further price appreciation. Another positive indicator is the Relative Strength Index (RSI), which is currently at 61.87. This suggests that Bitcoin is not yet at its peak, as an RSI above 70 typically indicates overbought conditions, while below 30 suggests oversold conditions.
Furthermore, the 200-Week Moving Average Heatmap, shaded in blue, indicates that the price top has not been reached yet and that it is a good time to hold and buy. Additionally, the Cumulative Value Coin Days Destroyed (CVDD) indicator and the 2-Year Moving Average Multiplier both point to a later top.
While these indicators suggest potential for further upside, investors should always remember that no single metric or combination of metrics can predict market movements with certainty. It’s crucial for investors to conduct thorough research and carefully consider their personal risk tolerance before making any investment decisions in the volatile cryptocurrency market.
The influence of Bitcoin as an institutional asset class is expected to be explored further at Benzinga’s upcoming Future of Digital Assets event on November 19th.
