Is It Time to Dump Bitcoin Following Bitfinex Whales Sell-Off? Here’s What 6 BTC Indicators Suggest

Crypto market developments have raised concerns about the next Bitcoin direction. BTC has been dropping in price, and Bitfinex whales are reducing their long positions. This has left many investors wondering whether it’s time to exit the market or if there’s still room for growth. To shed light on this situation, Lookonchain analyzed six key indicators that offer insights into Bitcoin’s current market position and potential future movements. let’s look at their analysis.

Rainbow Chart: Still in the Buy Zone

The Rainbow Chart, a long-term valuation tool utilizing a logarithmic growth curve, suggests that now is an opportune time to purchase Bitcoin. This indicator provides a broader perspective on BTC’s price trajectory, indicating that despite recent fluctuations, the cryptocurrency hasn’t yet reached its peak valuation.

Relative Strength Index (RSI): Approaching Overbought Territory

The current RSI stands at 69.93, just shy of the overbought threshold of 70. While this suggests that Bitcoin is nearing overbought conditions, it hasn’t quite crossed that line. Historically, an RSI above 70 often signals a potential price correction, while below 30 indicates oversold conditions that may precede an upturn.

200 Week Moving Average Heatmap: Hold and Buy

According to the 200 Week Moving Average Heatmap, Bitcoin’s current price point is in the blue zone. This indicates that the market hasn’t reached its peak, suggesting it may still be a good time to hold existing positions or consider new purchases.

Cumulative Value Coin Days Destroyed (CVDD): Top Not Yet Reached

The CVDD indicator, which helps identify undervalued conditions when Bitcoin’s price touches the green line, currently suggests that BTC hasn’t hit its top. This aligns with the notion that there might still be room for growth in the current market cycle.

Read Also: Notcoin Analysts Predict Continued Bullish Rally for NOT Following Key Breakout, Share Price Targets

2-Year MA Multiplier: Middle Ground

This indicator places Bitcoin’s price between the red and green lines, suggesting we’re in a middle ground. The fact that it hasn’t touched the red line implies that the market top hasn’t been reached, potentially leaving room for further upward movement.

Kumo Cloud and Potential Death Cross

Titan of Crypto (@Washigorira) points out that Bitcoin is currently trading in a support zone, with $66,100 being a crucial level to watch. If this level breaks, the Kumo cloud could serve as the next support. The analyst also notes a potential bounce based on the RSI and price action but cautions about a forming death cross, which could signal a bearish trend if it materializes.

Next Big Airdrop?

Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!

Show more +

While the recent sell-off by Bitfinex whales and the price drop have caused concern, the majority of these indicators suggest that Bitcoin may not have reached its peak for this cycle.

Captain just hit his first 100x among a lot 2-5xs. Want to be a part of a profitable community?
Get all our future calls by joining our FREE Telegram group.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

CaptainAltcoin
Logo