Bitcoin (BTC) Price Has Not Peaked Yet, Key Indicators Suggest

Bitcoin's price rise to an all-time high of $77k lately has ignited speculations about whether its bull run has reached its peak.

Bitcoin’s recent surge to an all-time high of $77K has sparked discussions about whether the bull run is nearing its peak.

On August 29, blockchain analytics platform Lookonchain highlighted five key indicators suggesting that BTC still has room to grow.

Today, these indicators remain crucial in assessing Bitcoin’s current and potential trajectory.

One of the key tools used by Lookonchain is the Bitcoin Rainbow2023 Chart, which indicates that Bitcoin is still undervalued.

This chart uses a logarithmic growth curve to evaluate long-term price potential, showing Bitcoin as still relatively cheap compared to its historical highs. Analysts interpret this signal as a potential for further price appreciation.

BTC’s RSI and The 200-Week Moving Average

The Relative Strength Index (RSI) currently sits at 70.38, which, though high, does not yet confirm a peak in Bitcoin’s price.

An RSI above 70 often suggests an overbought status, potentially signaling a price correction.

However, Bitcoin’s historical performance suggests that it could climb further despite this level, which Lookonchain believes may still reflect upward potential.

The 200-Week Moving Average (200W MA) Heatmap provides another bullish signal, showing Bitcoin’s current price point in blue, an indication that the asset is still not overvalued.

Traditionally, blue represents buying zones, where holding Bitcoin is often encouraged among investors who seek long-term gains, further suggesting that Bitcoin has not yet reached a market top.

CVDD and 2-Year MA Multiplier: No Clear Peak

The Cumulative Value Days Destroyed (CVDD) and 2-Year Moving Average (MA) Multiplier indicators also reinforce the analysis.

The CVDD currently positions Bitcoin’s price below the peak threshold, suggesting there’s still potential for growth.

Similarly, the 2-Year MA Multiplier shows Bitcoin trading between the green and red bands, a mid-point zone that further suggests a non-peak phase in Bitcoin’s market cycle.

Profitability Index Remains Below Previous Peaks

Onchain analyst, Axel Adler Jr. reported that the Bitcoin Profitability Index currently shows a 221% profit margin, lower than previous cycle highs of 460% and 395%.

With current users seeing returns 121% above initial investments, BTC’s profitability levels suggest there’s potential for higher returns, considering previous peaks were significantly higher.

According to CoinGecko, Bitcoin’s price is currently $76,442.83, reflecting a 0.62% increase over the last 24 hours and a 10.10% rise over the past week.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates. Get all our future calls by joining our FREE Telegram group.

We recommend eToro