Bitcoin (BTC) Still Has Room to Grow, 5 On-Chain Indicators Suggest

Bitcoin ($BTC) price went through a couple of major crashes during August 2024, shocking investors concerning a rebound or further decline.

Bitcoin (BTC) price experienced several drastic crashes in August 2024, leaving investors speculating on a potential rebound or further decline. Prominent on-chain analytics platform Lookonchain recently shared its analysis of five key indicators to determine whether the top crypto asset is nearing its peak or if there’s still room for an upsurge. The analytics firm took to social media to provide a detailed perspective in the respective analysis.

Rainbow Chart Indicates Bitcoin’s Current Market Position as Undervalued

According to Lookonchain, the rainbow chart is among the five key indicators highlighting Bitcoin’s market position. The rainbow chart functions as a long-term valuation instrument that utilizes a logarithmic expansion curve to predict the likely future direction for Bitcoin’s price. The latest statistics from this indicator suggest that the crypto token is still positioned in the “cheap” zone. This indicates that the crypto asset is currently valued at a low price in terms of its market worth.

Long-term investors have historically used this chart to determine whether Bitcoin is in a selling, holding or buying phase. $BTC remains in the lower bands of the rainbow chart, suggesting a potential for upward movements. Hence, the peak might not have been reached yet.

Current RSI Indicates Bitcoin’s Room for Growth

Another indicator in this regard is the relative strength index chart. RSI is a momentum indicator that measures the price movements in line with the change and speed. If RSI’s mark is 70 or beyond, this suggests Bitcoin’s overbought state. In such a situation, Bitcoin may soon experience a price slump. On the other hand, the 30 or lesser figure regarding the RSI points toward Bitcoin’s oversold state. Therefore, Bitcoin may soon increase.

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At the moment, Bitcoin’s RSI is nearly 61.87. In line with this, BTC is below its overbought threshold. According to this, the chief crypto has not touched its peak. Additionally, there is a possibility for price appreciation before a big correction.

200-Week Moving Average Heatmap Suggests It’s a Good Time to Accumulate Bitcoin

Moreover, the 200-week moving average heatmap is currently blue and signals that Bitcoin has not seen its peak. In this respect, it is a good time to buy more $BTC.

Cumulative Coin Days Destroyed Reinforces Bitcoin’s Undervalued Position

Furthermore, the cumulative value of coin days destroyed (CVDD) serves as another metric to help detect Bitcoin’s undervalued position. Currently, this chart also reinforces the idea that $BTC has not yet touched its top.

2-Year MA Multiplier Indicates Bitcoin Growth Potential

The fifth indicator is the 2-Year MA Multiplier, which compares the price of Bitcoin against a couple of chief moving averages. They take into account 2-year MA x 5 and 2-year MA. This indicator says the BTC price stands between the green and red lines, again indicating room for further growth.

In summary, all five indicators used by Lookonchain for this BTC analysis indicate that it is still a good time to accumulate BTC, as the cryptocurrency is far from its bull cycle peak.

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