Is Bitcoin Price Still Below Its Value While Reaching New Peaks?

Bitcoin (BTC) has reached a new all-time high, surpassing the $77,000 level. However, investors are wondering whether this rally will lead to profit-taking or if there is room for further upside. In the market, there is a growing consensus that Bitcoin is still undervalued. During this period of price discovery for Bitcoin, it is important to go beyond traditional technical analysis. On-chain metrics are critical in supporting investment decisions. Here are the metrics that indicate Bitcoin is still undervalued.

Is Bitcoin Still Below Its Value? 5 On-Chain Indicators

The Rainbow Chart provided by the Blockchain Center is a tool that evaluates the long-term price trends of Bitcoin. This chart indicates that Bitcoin is still in the 'undervalued' zone. Analysts point out that these levels offer an attractive buying opportunity for investors.

Another important metric is the RSI indicator. The RSI indicator is currently at 70.83 level. It also shows that Bitcoin (BTC) has not yet reached the overbought zone. This indicates that the current price movement has not reached its peak and there is potentially more room for growth. Investors need to follow the RSI indicator to understand the direction of the market.

200-Weekly Heat Map and CVDD Data

The 200-week moving average heat map is another important metric. This metric shows that Bitcoin's current price is still in the "blue zone" and this zone generally indicates buying opportunities. Historically, Bitcoin held in this zone has provided significant returns.

Cumulative Value Days Destroyed (CVDD) is one of the key metrics to be followed. CVDD data provides a signal of valuation in the market when the Bitcoin price approaches the orange line. Currently, this metric indicates that Bitcoin has not yet reached its peak and presents a potential buying opportunity.

Which Direction Will the Bitcoin Price Go? These Metrics

The 2-year MA multiplier also emerges as an important metric. According to this indicator, Bitcoin has not yet reached the red trend line. This indicates that there is more room for growth before the market reaches its potential peak.

Along with all this data, Santiment notes that increasing FOMO on social media could increase the risk of a correction in the price of Bitcoin. As we have reported at Kriptokoin.com, historically, periods of excessive optimism often result in price pullbacks. It is recommended that investors carefully monitor this trend and manage the effects of FOMO. Bitcoin's current price movement indicates that further upside is possible, but market dynamics need to be closely monitored.

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