Recently, Bitcoin [BTC] has faced losses despite good news, such as BBVA offering trading services. The Winklevoss Rainbow Chart indicates that the cryptocurrency is still cheap.
Buy Signal from the Rainbow Chart
The Rainbow Chart is a visual tool tracking Bitcoin's long-term trends. Currently, it suggests that the cryptocurrency is 'still cheap'.
Current Cycle and Its Differences
In past cycles, the Rainbow Chart reached the 'Seriously sell!' zone, but not this time. Other differences in price action suggest we are not near a cycle top.
Current RSI and Dominance Trends
Recently, the RSI stayed above 70 for six weeks before falling below the neutral 50, similar to the 50% correction seen in summer 2021. Bitcoin's dominance is also showing growth, reaching levels not seen since March 2021.
Despite the potential for steep price drops, the current dominance and RSI trends differ from past cycles and may reassure long-term investors.
