As a seasoned researcher with a knack for deciphering cryptocurrency trends and a not-so-secret crush on Bitcoin, I must say that the current state of affairs is nothing short of exhilarating. The recent surge past $77,000 is a testament to the resilience and potential of this digital gold.
Supporters of Bitcoin have demonstrated resilience following Donald Trump’s election victory and this week’s Fed rate cuts, holding their ground near $75,000. Today, the price of Bitcoin reached a brand-new peak, surpassing the $77,000 mark. The question on everyone’s mind is whether this rapid surge might trigger some profit-taking or if there’s still ample momentum driving the rally forward.
5 On-chain Metrics That Prove Bitcoin Price Is Undervalued
As Bitcoin reaches an unprecedented peak in its value, it finds itself in a price exploration territory without any preceding technical chart guidance. Yet, on-chain indicators can offer insightful advice for investors regarding their next move. Here are five key metrics suggesting Bitcoin remains underpriced:
Rainbow Chart
The blockchain analysis platform Lookonchain indicates that the “BTC rainbow chart” is a long-term prediction tool based on a logarithmic growth curve, providing insights into future BTC price patterns. According to the latest Rainbow2023 projection, Bitcoin’s current value appears to be underestimated.
Relative Strength Index (RSI) Chart
At the moment, Bitcoin’s Relative Strength Index stands at 70.83, suggesting that the price may not have reached its maximum just yet. The RSI is a valuable tool for determining if an asset is still in the overbought or underbought state. In simpler terms, it helps us understand whether the price has been rising too quickly (overbought) or falling too rapidly (underbought).
200-Week Average Heatmap for BTC Price
Looking at the 200-week moving average chart, it appears that Bitcoin’s present value falls within the ‘blue zone’. This suggests that the highest point in its price hasn’t been attained yet, indicating a promising context for holding onto existing Bitcoin or even considering further purchases, given the current conditions.
Cumulative Value Coin Days Destroyed (CVDD)
According to this graph, hitting the orange line on the Bitcoin price chart signals an underpriced market, offering a beneficial moment for purchasing. The current CVDD (Cumulative Value Days Destroyed) figures indicate that Bitcoin’s price hasn’t peaked yet.
Two-Year Multiplier for Bitcoin Price
Based on the 2-Year Moving Average Multiplier, the current Bitcoin price is positioned midway between the red and green trendlines. This indicates that Bitcoin hasn’t yet hit the red line linked to market peaks, implying there may be more growth in the market before potentially reaching a maximum point.
Will the Current FOMO Drag BTC Down?
As the U.S. elections and FOMC meeting approached, Bitcoin saw swift 10% growth. Some financial experts predict this surge may temporarily slow down. According to blockchain analysis firm Santiment, there has been a change in public sentiment following Bitcoin’s rise to fresh record highs.
Historically, when there’s excessive excitement about Bitcoin priced over $80,000, prices often experience a correction. It’s recommended that investors keep an eye on this pattern and use the public’s fear of missing out (FOMO) and fear, uncertainty, and doubt (FUD) responses to their advantage. This was the suggestion made.
In my recent analysis of the Bitcoin versus Gold debate, the CEO of VanEck predicted that the value of Bitcoin could potentially soar to an astounding $300,000.
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2024-11-09 07:38