Alright, crypto fam, listen up! The FUD merchants were out in force last week after Bitcoin blew past all-time highs, whispering about a top. But guess what? Don’t believe the hype! A deep dive by Lookonchain reveals that, actually, we might still have a long way to go.
Photo source:blog.bitpanda.com
Four key technical indicators are screaming ‘not yet!’ The Rainbow Chart, a historically accurate predictor, is now suggesting a potential cycle top well north of $200,000. Seriously, $200K!
Let’s break it down. The monthly RSI is currently sitting at 71.35, flirting with overbought territory, sure, but historically, it’s pushed much higher before reversing. This isn’t a ceiling, it’s a launching pad!
Then we’ve got the 200-week moving average heatmap, currently glowing a beautiful shade of blue. What does blue mean, folks? It’s buy the dip time and hodl like your life depends on it!
Finally, the 2-year multiplier hasn’t even hit the red zone – the warning sign for a peak. We’re still firmly in the middle of this bull run, not at the end.
Here’s a little more wisdom for you, straight from a seasoned trader:
Rainbow Charts utilize moving averages and log regression to visualize potential price cycles. They help identify overbought and oversold conditions.
The Relative Strength Index (RSI) measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of an asset. It’s a momentum oscillator.
A 200-week moving average is considered a long-term trend indicator, often representing the average price over a year. Blue indicates a bullish trend.
The 2-year multiplier is a ratio comparing the current price to the price two years prior. Rising multipliers suggest continued bullish momentum.
