Bitcoin’s value has reportedly taken a hit, as reported by Lookonchain, a well-known provider of on-chain analytics. The whales on Bitfinex, a popular crypto exchange, have decreased their long positions in response to this decline. Lookonchain shared the details of the current market situation on its official X account.
Lookonchain took to social media to share five indicators that suggest it may be time to avoid reaching the peak of Bitcoin’s value. One of these indicators is the Rainbow Chart, which serves as a long-term valuation tool, using a logarithmic growth curve to predict Bitcoin’s future price direction.
Despite the current dip, the Rainbow Chart is still showing positive signs, indicating that it may be a good time to buy Bitcoin. Additionally, Lookonchain highlighted the relative strength index chart, pointing out that when the indicator is below 70, Bitcoin is considered overbought and may experience a drop, while above 30 indicates oversold conditions and potential for an increase. The RSI indicator is currently at 69.93, suggesting that Bitcoin has not yet reached its peak.
Comparing current data to previous statistics, Lookonchain suggests that Bitcoin has not yet reached its highest point. Another indicator discussed is the 200 Week Moving Average Heatmap, which shows that Bitcoin has not yet reached its price peak, indicating that there is still time to buy and hold BTC.
The Cumulative Value Coin Days Destroyed indicator suggests that when the token reaches the green line, it is undervalued and presents a good buying opportunity. Similarly, the 2-Year MA Multiplier indicates that Bitcoin’s price has not yet reached its peak, as it has not touched the red line.
In conclusion, despite the recent slump in Bitcoin’s value, these indicators suggest that there is still potential for growth and opportunities for investors to buy and hold BTC.