The BTC bulls have been showing strength with the Donald Trump victory and the Fed rate cuts this week while defending $75,000. Earlier today, the Bitcoin price hit a fresh all-time high shooting past $77,000 levels. Investors are curious whether this quick run-up could lead to some profit booking or if there’s more fuel left in the rally.
5 On-chain Metrics That Prove Bitcoin Price Is Undervalued
With the Bitcoin price hitting a new all-time high, the asset has entered into a price discovery zone with no history of previous technical charts. However, on-chain metrics can help us make the right decision as to what investors should do next. Let’s take a look at five metrics that prove Bitcoin is undervalued.
Rainbow Chart
Blockchain analytics platform Lookonchain showed that the BTC rainbow chart is a long-term valuation tool that will leverage a logarithmic growth curve projecting future BTC price trends. As per the updated Rainbow2023 chart, the Bitcoin price remains still undervalued.
Relative Strength Index (RSI) Chart
Currently, the Relative Strength Index for BTC is 70.83, which, in comparison to the previous data shows that the price hasn’t reached its peak yet. RSI is a crucial indicator in deciding whether the asset remains in the overbought or underbought zone.
200-Week Average Heatmap for BTC Price
The 200-Week Moving Average Heatmap reveals that Bitcoin’s current price point remains in the blue zone, signaling that the price peak has not yet been reached. According to the heatmap, this indicates a favorable environment for holding and potentially buying.
Cumulative Value Coin Days Destroyed (CVDD)
As per the below chart, when the Bitcoin price touches the orange line, it indicates an undervalued market, presenting a favorable buying opportunity. Current CVDD (Cumulative Value Days Destroyed) data suggests that the BTC price has not yet reached its peak.
Two-Year Multiplier for Bitcoin Price
According to the 2-Year MA Multiplier, 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. This suggests that the market has room to grow before reaching a potential peak.
Will the Current FOMO Drag BTC Down?
In the week leading up to the US elections and the FOMC meeting, BTC has registered quick 10% gains with some market analysts expecting the rally to pause for a while. Blockchain analytics platform Santiment reports a shift in social sentiment following Bitcoin’s ascension to new all-time highs.
Historically, when enthusiasm for an $80,000+ BTC grows too intense, prices have tended to pull back. Investors are advised to monitor this trend and leverage the crowd’s FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt) reactions, it noted.
However, in the latest Bitcoin vs Gold comparison, the VanEck CEO said that the Bitcoin price can easily touch $300,000.
The post 5 On-Chain Metrics Signals Bitcoin Price Is Still Undervalued At ATH appeared first on CoinGape.
