After The Bitcoin Crash: Will It Rise Or Drop Again? 5 Key Indicators

In the aftermath of yesterday’s Bitcoin crash, market participants are closely examining whether the leading cryptocurrency by market capitalization can rebound or if it faces the prospect of another decline. In a post shared on X today, February 4, on-chain analysis data provider Lookonchain offered insights into five critical indicators that may help traders and investors assess Bitcoin’s current position. “The price of Bitcoin experienced a major crash yesterday! Will it continue to rise or fall from the top? Let’s use 5 indicators to see if BTC is at its peak now,” Lookonchain writes. #1 Bitcoin Rainbow Chart Described by Lookonchain as “a long-term valuation tool that uses a logarithmic growth curve to forecast the potential future price direction of BTC,” the Rainbow Chart is often employed to gauge whether Bitcoin might be undervalued, overvalued, or approaching a key turning point. “The NEW Bitcoin Rainbow2023 Chart shows that you can still hold BTC, and BTC will top above $250K this cycle.” Related Reading: Bitcoin Traders Fearful For First Time Since October: Buying Signal? While this chart suggests a bullish long-term trajectory, its forecasts are based on historical price patterns and may not account for unforeseen market events. Nonetheless, Lookonchain’s data

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