With Bitcoin prices at an all-time high, there’s a lot of interest in determining whether the asset is undervalued or not. Five on-chain metrics paint a picture of a potentially valuable cryptocurrency:
1. Rainbow Chart: A logarithmic growth curve projecting future Bitcoin price trends, showing that the price is still undervalued.
2. Relative Strength Index (RSI) Chart: Currently at 70.83, showing that the price hasn’t reached its peak yet. 3. 200-Week Average Heatmap for BTC Price: The current price point remains in the blue zone, signaling that the price peak has not yet been reached. 4. Cumulative Value Coin Days Destroyed (CVDD): Current CVDD data suggests that the BTC price has not yet reached its peak.
5. Two-Year Multiplier for Bitcoin Price: The BTC price currently sits between the red and green trend lines, signaling that it has not yet reached the red line associated with market tops. Historically, when enthusiasm for Bitcoin grows too intense, prices have tended to pull back. Investors should monitor this trend and not let FOMO (fear of missing out) or FUD (fear, uncertainty, and doubt) reactions sway their decisions.
