Bitcoin Price Bull Run Is Intact As Per These Five On-chain Metrics

After attempting to hit its all-time high of $74,000 earlier this month, the Bitcoin (BTC) price has faced strong selling pressure and is trading 10% down from its June highs. On Friday, June 14, the BTC price corrected by an additional 1.26% dropping all the way under $66,000.

Bitcoin Bull Run Remains Intact

During the second quarter of 2024, Bitcoin has largely underperformed dropping by 5%. This selling pressure comes amid the Bitcoin miner capitulation following the halving event ahead this year in April 2024.

The Bitcoin price consolidation over the last few weeks has made investors believe that this is the end of the bull run for the world’s largest crypto. However, on-chain data from Lookonchain suggests that the bull run remains intact. Let’s take a look at five such indicators that suggest so.

Bitcoin Price Rainbow Chart: The rainbow chart for Bitcoin price, also a long-term valuation tool, uses a logarithmic growth curve in order to forecast the potential price direction for BTC. As per this chart, it is still a good time to buy BTC.

Relative Strength Index: The Bitcoin Relative Strength Index (RSI) is currently at 69.9. An RSI reading above 70 suggest that the asset is overvalued, while a reading under 30 shows that it’s undervalued. However, the current Bitcoin RSI reading shows that the price hasn’t reached its peak.

200-Week Moving Average: The heatmap below showing Bitcoin’s 200-week moving average suggests that the current price point is still in the blue zone suggesting that the price hasn’t reached yet. Thus, it’s time to hold and buy this asset.

Cumulative Value Coin Days Destroyed(CVDD):

When the Bitcoin price hits the green line, it indicates an undervalued position and a favorable buying opportunity. The current CVDD suggests that BTC has not yet reached its peak.

Bitcoin 2-Year Multiplier: As per the 2-year multiplier indicator for the Bitcoin price, BTC is still trading in the middle of the red and green lines. Unless it touches the red line, there’s no confirmation of the BTC price hitting the top.

Bitcoin Price Levels to Watch

Over the past 10 days, there’s been heavy selling by the Bitcoin whales as this cohort sold 50,000 Bitcoins worth $3.0 billion in such a short time. As per popular crypto analyst Ali Martinez, the Bitcoin price needs to quickly climb above $66,254, or it risks falling to $61,000.

#Bitcoin needs to climb back above $66,254 quickly to avoid a potential correction down to $61,100! pic.twitter.com/WMr7jcAVJU

— Ali (@ali_charts) June 14, 2024

Also, as per CryptQuant CEO Ki Young Ju, the average entry price for Bitcoin traders is around $47,000. In a bull market, BTC’s price typically remains above this entry-level. Even with a 27% drop, the market can still be considered bullish. “Remain optimistic for the long term, but be cautious of excessive risks. This is financial advice,” he noted.