Bitcoin is currently facing a downturn as whales on Bitfinex, a popular crypto exchange, have reduced their long positions, as reported by Lookonchain, a renowned on-chain analytics provider. The platform shared the latest market status 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. Among 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 still shows positive signs, indicating that it may still be a good time to buy Bitcoin. Additionally, Lookonchain highlighted the relative strength index chart, noting two significant points where the indicator is either below 70, suggesting Bitcoin is overbought and may see a decline, or above 30, indicating oversold conditions that could lead to an increase. The current RSI indicator point is around 69.93, with comparisons to previous data suggesting that Bitcoin has not yet reached its peak.
Furthermore, Lookonchain presented the 200 Week Moving Average Heatmap chart, showing that the current price position is still in the blue zone, indicating that Bitcoin has not yet reached its price peak and there is still time to buy and hold.
Another indicator discussed is the Cumulative Value Coin Days Destroyed, which suggests that once the token reaches the green line, its price becomes undervalued, presenting a good buying opportunity. This indicator also supports the notion that Bitcoin has not yet reached its peak. Additionally, the 2-Year MA Multiplier indicator shows Bitcoin’s price between the green and red lines, with the token not yet reaching the red line, signifying that it has not yet peaked.
Overall, despite the current slump, the indicators provided by Lookonchain suggest that Bitcoin still has room to grow and may present favorable buying opportunities for investors.