Bullish Bitcoin RSI Signals Price Surge

Bitcoin (BTC) may be approaching the end of its bullish run, according to an on-chain metric called the value days destroyed (VDD) multiple. This metric, which has accurately predicted previous BTC price tops, has reached a “rare” high. Despite failing to reach new all-time highs or surpass its previous peak from 2021, some experts believe that BTC will bounce back. Analysts analyzing on-chain signals are growing concerned. One such analyst, TXMC, shared updated VDD multiple data and noted that it had reached levels seen before previous macro tops in BTC/USD. This raises the question of whether on-chain momentum for BTC has peaked.

The VDD multiple compares on-chain spending to historical averages in order to determine when market psychology is driving a blow-off top in price. The “value days destroyed” component measures the number of days that coins were dormant before being used on-chain. In March, when the VDD multiple was around 3.5, TXMC already considered it to be overheated. He noted that while the metric isn’t perfect, it is still significant.

One key difference between the current situation and early 2021 is that during the last spike in the VDD multiple, BTC/USD had already doubled its previous all-time high of $20,000. TXMC pointed out that the current value is being reached while still at the prior all-time high, making the overall picture uncertain.

While some indicators are causing concern, other metrics are giving traders reasons to be cautiously optimistic. The relative strength index (RSI), for example, recently “reset” to levels last seen in late January. This suggests that a bounce may be due in a strong bullish trend. Another positive sign is the hidden bullish divergence between price and the 4-hour RSI, which indicates a possible uptrend continuation.

Monthly timeframes for the RSI continue to hold above 70, which is significant to analysts like Plan B who are monitoring Bitcoin’s incoming block subsidy halving. This event could have an impact on BTC’s price in the future.

The VDD multiple reaching a rare high is causing concern among analysts who follow on-chain signals. While some indicators are positive, such as the RSI, the uncertain overall picture of BTC’s bull run raises questions about its future trajectory. Traders and investors will need to closely monitor these on-chain metrics and indicators to make informed decisions.

2 thoughts on “Bullish Bitcoin RSI Signals Price Surge

  1. Despite the positive signs like the RSI reset, the overall picture remains uncertain. 🔄 It’s a risk to invest in Bitcoin right now. 🔒

  2. Ups and downs are part of the crypto game. Let’s stay patient and see what the future holds for BTC!

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