RSI Analysis: Bitcoin Poised for Short-Term Growth as Metric Indicates Price Peak

Bitcoin (BTC) may be approaching the end of its macro bull run, according to a historically accurate on-chain metric. The value days destroyed (VDD) multiple, which has predicted previous BTC price tops, has reached a “rare” high. Despite the optimism of some who believe BTC price discovery will resume, analysts analyzing on-chain signals are growing concerned. One such analyst, TXMC, shared fresh VDD multiple data and revealed that the chart displayed highs that were only seen shortly before BTC/USD reached macro tops. The VDD Multiple compares on-chain spending to historical averages to determine when market psychology is driving a blow-off top for price. The VDD multiple was already described as “overheated” when it reached around 3.5 in March. However, this year differs from early 2021 as BTC/USD had already doubled its prior all-time high during the VDD multiple’s last spike. The overall picture is now considered “uncertain.” Other chart metrics, such as the relative strength index (RSI), have provided cautious optimism for traders. The RSI recently saw a “reset” to levels not seen since late January, indicating a potential bounce in a strong bullish trend. Popular traders Jelle and Alan Tardigrade noted promising signals on the RSI timeframes, suggesting a possible uptrend continuation. Monthly timeframes are also holding above 70, which is being closely watched by analysts like Plan B ahead of Bitcoin’s upcoming block subsidy halving.