Will It Rise Or Drop Again?
This article also provides Spanish.
After yesterday’s Bitcoin collisionMarket participants are carefully studying whether the main cryptocurrencies of market capitalization can rebound, or they are still facing another decline. In the post shared today in X, the chain analysis data provider lookonchain propose The five key indicators can help traders and investors evaluate the current position of Bitcoin.
“A major collapse of the price of Bitcoin yesterday! Will it continue to rise from the top or fall from the top? Let us use 5 indicators to see if the BTC is reaching its peak now.” Lookonchain wrote.
# 1 Bitcoin Rainbow Picture
LOOKONCHAIN ​​describes it as “the use of a long -term assessment tool to predict the potential future price direction of BTC to predict the potential future price direction of BTC”, Rainbow chart It is usually used to evaluate whether Bitcoin may be valued, overestimating or close to the key turning point. “The new Bitcoin Rainbow2023 chart shows that you can still hold BTC, and BTC will be higher than $ 250,000 in this cycle.”
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Although the chart shows the long -term trajectory of the bullish, its prediction is based on the historical price model, and may not explain unpredictable market events. However, the data of lookonchain shows that Bitcoin has not yet reached its peak view.
Bitcoin Rainbow Picture | Source: X @Lookonchain
# 2 relative strength index (RSI)
RSI is a technical indicator that measures the range of recent price changes to evaluate excessive purchases or superb conditions. “≥70: BTC is super -purchased and may soon decrease. ≤30: BTC is super -selling, which may increase quickly. Compared with the previous data, the current RSI is 75.56, which seems to have not yet reached its peak.”
RSI reads more than 70, which usually causes people to worry about correction. However, the observation results of LookonChain emphasize their views, that is, despite the high RSI, historical data does not necessarily confirm the top market.
Relative strength index (RSI) | Source: x @Lookonchain
# 3 200 weeks of moving average (200W MA) hot map
Traders usually use 200W MA as the basic support or resistance level. Its hot map changes have chart the wider amount of momentum and potential inflection points for many years. “The average hot picture of the 200 -week movement shows that the current price is blue, which means that the price has not reached the rise, and now it should be held and purchased.”
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The “blue” read on the hot map means that the market has not yet displayed the peak signal observed in the previous cycle. Although some people may think that this shows further potential upward space, considering the uncertainty of macroeconomics, others are still cautious.
200 weeks of mobile average hot map | Source: x @Lookonchain
# 4 Bitcoin cumulative value coin daily destroy (CVDD)
Cold coin day was destroyed It is a long -term chain indicator. The point is to retain the time of BTC in a specific wallet before moving. CVDD will summarize these data over time, the purpose is to point out the points that may be underestimated or overestimated Bitcoin. “When the price of BTC encounters the green line, the price of $ BTC is underestimated. This is a good purchase opportunity. The current CVDD shows that the top of the $ BTC seems to have not reached.”
According to LOOKONCHAIN, the position of Bitcoin relative to the indicator shows that the market has not encountered the highest conditions observed in history, which indicates that it may be further upward.
Cumulative value coin days are destroyed (CVDD) | Source: x @Lookonchain
# 5 2 years MA multiplication
The two -year mobile average multiplication is another extensive quotation model, comparing the current price of Bitcoin with its two -year mobile average. “The MA multiplication of 2 years indicates that the price of $ BTC is located in the middle of the red and green lines. It has not yet touched the red line, and the market has not yet reached its peak.”
Historically, the price of Bitcoin is close or exceeds the upper red line, which is usually consistent with the cycle peak. Because Bitcoin is still at mid -distance, the data shows that the top may not be realized, although this does not eliminate the risk of further fluctuations.
2 -year MA multiplication | Source: x @Lookonchain
Overall, based on these five indicators, the analysis of lookonchain pointed out a conclusion that the top of the current market cycle of Bitcoin may not yet be found.
At the time of release, the transaction price of BTC was $ 99,419.
Bitcoin price, 1 week chart | Source: btcusdt on tradingView.com
Use the characteristic images created by Dall.e, the chart of tradingView.com
