Bitcoin Price Bull Run Is Solid According to These Five On-Chain Metrics
Bitcoin (BTC) price, which attempted to reach an all-time high of $74,000 earlier this month, has faced strong selling pressure and is trading down 10% from its June highs. On Friday, June 14, BTC price corrected another 1.26%, falling below $66,000.
Bitcoin Bull Run Remains Robust
In the second quarter of 2024, Bitcoin has significantly underperformed, falling 5%. This selling pressure comes amid Bitcoin miners capitulating following the halving event that will take place this year in April 2024.
Bitcoin price consolidation over the last few weeks has led investors to believe that this is the end of the bull run for the world’s largest cryptocurrency. However, on-chain data from Lookonchain shows that the bull run remains intact. Let’s take a look at five indicators that suggest this.
Bitcoin Price Rainbow Chart: Also a long-term valuation tool, the rainbow chart of Bitcoin price uses a logarithmic growth curve to predict the potential price direction of BTC. According to this chart, it’s still a good time to buy BTC.
Relative Strength Index: Bitcoin Relative Strength Index (RSI) is currently at 69.9. An RSI reading above 70 indicates the asset is overvalued, while a reading below 30 indicates the asset is undervalued. However, the current Bitcoin RSI reading shows that the price has not reached its peak.
200-Week Moving Average: The heatmap below showing Bitcoin’s 200-week moving average shows that the current price point is still in the blue zone and the price has not yet reached it. So it’s time to hold and buy this asset.
Cumulative Value Coin Days Destroyed (CVDD):
When the Bitcoin price reaches the green line, it indicates an undervalued position and a positive buying opportunity. The current CVDD shows that BTC has not yet reached its peak.
Bitcoin 2 Year Multiplier: According to the 2-year multiplier indicator of Bitcoin price, BTC is still trading in the middle of the red and green lines. There is no confirmation that BTC price has reached its peak unless it touches the red line.
Bitcoin Price Levels to Watch
Over the last 10 days, there has been intense selling by Bitcoin whales as this group sold 50,000 Bitcoins worth $3.0 billion in such a short time. According to popular crypto analyst Ali Martinez, Bitcoin price needs to rise above $66,254 quickly, otherwise it risks falling to $61,000.
Additionally, according to CryptQuant CEO Ki Young Ju, the average entry price for Bitcoin investors is around $47,000. In a bull market, the price of BTC usually remains above this entry level. Despite a 27 percent decline, the market can still be considered to be on the rise. “Stay optimistic in the long term, but be wary of extreme risks. “This is financial advice,” he said.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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