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Lookonchain Predicts Bitcoin's Future

Aug 29, 2024
  1. Indicator 1: Rainbow Chart
  2. Indicator 2: Relative Strength Index (RSI)
  3. Indicator 3: 200-Week Moving Average Heat Map

Cryptocurrency analytics firm Lookonchain provided insights into Bitcoin's trajectory following the price crashes in August, identifying five key indicators that will help determine the future of the most popular cryptocurrency.

Indicator 1: Rainbow Chart

The Rainbow Chart, using a logarithmic growth curve, serves as a long-term valuation tool and is used to predict Bitcoin's future price direction. According to Lookonchain, the updated Bitcoin Rainbow2023 Chart shows that Bitcoin's current price is 'cheap' and might indicate a good buying opportunity.

Indicator 2: Relative Strength Index (RSI)

The RSI is a momentum indicator that measures the speed and change of price movements. A reading above 70 indicates that Bitcoin is overbought and could soon fall, while a reading below 30 indicates that it is oversold and could rise. Lookonchain notes that Bitcoin’s current RSI reading is 61.87, indicating that BTC has not yet peaked and may have room for further growth.

Indicator 3: 200-Week Moving Average Heat Map

This indicator tracks the Bitcoin price against its 200-week moving average. When the heatmap shows a blue color, it indicates that the price peak has not been reached and indicates a hold or buy opportunity. Lookonchain notes that Bitcoin’s current position on the heatmap remains blue, reinforcing the idea that the market has not yet reached its peak.

Lookonchain has highlighted several key metrics that may help investors determine Bitcoin's future. It is important to remember that this is not investment advice, and decisions should always be made considering all potential risks.

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