- Bitcoin’s Rainbow Chart unveiled a purchase signal after he had been to HODL territory since December
- The RSI and Dominance trends did not fully match the previous Cyclust tops
Bitcoin [BTC] Has latter losses lately, despite a steady intake of apparently positive news. An example of this is news about the Spanish bank giant BBVA offer BTC and Ethereum [ETH] Acting to his customers.
Source: Blockchain center
The Bitcoin Rainbow Chart is a logarithmic growth curve covered with rainbow colors to visualize long-term Bitcoin trends. At the time of writing it showed that the price was ‘still cheap’.
In the previous two cycles, the graph has at least “seriously selling!” territory. This time it doesn’t even have the “Is this a bubble?” territory. Of course we cannot base our investment choices on only the Bitcoin Rainbow Chart. However, there are still a few differences with earlier cycles and the prevailing price action – signs that we are not yet close to a top.
Some reasons why you should not sell your BTC yet
Source: BTC/USD on TradingView
Assuming that you will not hold Bitcoin for the next decade, it would be nice to ride on the upward trend, to sell around the top and gather through the Berenmarkt. But much easier said than done.
In 2017, the weekly BTC RSI was more than 70 more than several weeks, because the price set a series of new, incredible highlights. In 2021 the price and the RSI made a bearish divergence. Then the price fell by almost 50%before he recovered and then entered the Bear Market.
In recent months, the RSI was a total of six weeks higher than 70, but soon fell lower. It has since been under neutral 50 cases, which looks like the 50% correction BTC saw in the summer of 2021. A correction of similar size could last BTC up to $ 54k.
Source: BTC.D on TradingView
Another inequality with the previous two cycles tops was the behavior of Bitcoin -Dominance. The BTC.D has been low points for almost several months during the last two cycles tops. At the moment it is on an upward trend, so that new highlights have not been seen since March 2021.
That is why investors must be wary of further, steeper decrease. And yet long-term investors can draw comfort from the fact that the dominance and RSI trends did not match the previous cycles tops.