- The price temperature of Bitcoin rises to 2.64 points and is approaching an overheated zone.
- Despite the rise in BPT, Bitcoin still has more room for growth before a correction.
In the past month, Bitcoin [BTC] has risen by 17.94% increasing from a low from $ 83k to $ 111k. Although the recent profits are a welcome development, some stakeholders make their concern about a potential overheating.
One of them is a cryptoquant analyst Axel AdlerHe has warned that Bitcoin is approaching an overheated zone.
In his analysis, Adler noted that Bitcoin’s price temperature has risen to 2.67 points, suggesting that the King Coin is approaching a potentially overheated zone. He added,
“In the previous two peaks of this cycle, BPT reached 2.75 and 3.57.”
Source: Cryptuquant
On average, BTC temperatures have reached the overheated zone as BPT 3.14. Currently there are still 0.47 points before the market enters the full overheated territory.
BTC has therefore not yet reached the earlier top levels and still has some room for upward movement before he reaches overheated levels.
What suggest BTC graphs
Although the analysis provided above offers promising prospects, it is essential to check and determine what other graphs suggest.
To start with, looking at the MVRV of Bitcoin, it was around 2.4 at the time of the press. In the past month it has rescheduled around 2.13 and 2.41. These levels are usually associated with a healthy market.
Historically, Bitcoin has reached overheat when MVRV 3.0 surpasses, with long -term holders who start selling. With MVRV who stay under 2.5 and 3.0, this suggests that BTC still has more room for growth.
Source: Bitbo
This was further confirmed by Bitcoin’s NUPL. At the moment, NUPL was 58% or 0.58, which is a belief/denial zone. So BTC still has to be overheated, because the NUPL did not reach 0.75.
When NUPL enters an extreme euphorse zone, this leads to a profit, while holders are concerned about possible correction.
Source: Bitbo
Finally, looking at Bitcoin’s Pi -Cyclustop, BTC is far from overheated. In particular, BTC comes in an overheated zone when 111 Day SMA crosses above 2x 350 days SMA. This has not happened in the last four years.
The last crossover was recorded in 2021.
At the time of the press, the 350 X2 SMA was around $ 160k, while 111 DSMA was $ 91k. So there was even more room for more growth until the two lines meet.
Source: Bitbo
Simply put, although Bitcoin’s price temperature has been purchased to be almost overheated, there is even more room for growth. As far as other market indicators indicate that BTC could continue the rally.
A continuation of the current Uptrend could touch BTC $ 120K. However, if the correction emerges here, because some holders are profitable, BTC can come back in $ 106k.