Bitcoin’s recent price fluctuations have speculation about the longevity of its current bull run. Despite a recent correction from its highs earlier this month, several key on-chain metrics suggest that Bitcoin’s upward trajectory is far from over.

As of Friday, June 14, Bitcoin faced a 10% decline from its peak of $74,000, dropping below $66,000 amidst significant selling pressure. This correction, attributed in part to miner capitulation following the April 2024 halving event, has prompted concerns among investors about the sustainability of Bitcoin’s bullish trend.

However, insights from on-chain data analytics paint a different picture. According to Look on chain, a prominent source for on-chain analysis, there are five critical indicators indicating that Bitcoin’s bull run remains intact despite recent market movements.

Key On-Chain Metrics Supporting Bitcoin’s Bull Run

1. Bitcoin Price Rainbow Chart: The Bitcoin Price Rainbow Chart, a logarithmic growth curve used for long-term valuation, suggests that Bitcoin is still within a favorable buying zone. This tool forecasts potential price directions based on historical trends, indicating that current levels may present buying opportunities rather than signaling a market peak.

2. Relative Strength Index (RSI):Bitcoin’s RSI currently stands at 69.9, indicating a balanced market sentiment. Typically, an RSI above 70 suggests overvaluation, while under 30 indicates undervaluation. With Bitcoin’s RSI below the overbought threshold, there’s room for further price appreciation according to technical analysis.

3. 200-Week Moving Average: Examining Bitcoin’s 200-week moving average reveals that the current price level is still comfortably situated within a historically supportive range. This indicator, often used to gauge long-term trends, suggests that Bitcoin has not yet reached its peak price, reinforcing a bullish outlook.

4. Cumulative Value Coin Days Destroyed (CVDD):CVDD, another crucial metric in on-chain analysis, tracks the movement of long-term investor holdings. Currently, CVDD indicators suggest that Bitcoin remains undervalued relative to its potential peak, indicating ongoing accumulation by long-term holders.

5. Bitcoin 2-Year Multiplier: The 2-Year Multiplier, an indicator comparing current prices to those from two years ago, shows that Bitcoin is positioned between its historical peaks and troughs. Until Bitcoin approaches the upper boundary of this range, there is speculation that its price could continue to rise, further supporting the bullish sentiment.

Analyst Insights and Market Trends

Despite recent sell-offs, market analysts remain cautiously optimistic about Bitcoin’s long-term prospects. Crypto analyst Ali Martinez highlights that Bitcoin needs to reclaim key resistance levels above $66,254 to avoid further downside risk towards $61,000. Moreover, insights from Crypt Quant CEO Ki Young Ju emphasize that Bitcoin’s price, despite a significant drop, remains above the average entry point of $47,000, characteristic of bullish market conditions.

“While short-term volatility may cause concern, these metrics suggest that Bitcoin’s current correction is part of its natural market cycle rather than signaling an end to the broader bull run,” commented one analyst.

Conclusion

In conclusion, while recent price movements have stirred debate within the crypto community, the underlying data from on-chain metrics provides compelling evidence that Bitcoin’s bull run remains intact. Investors and enthusiasts alike are encouraged to monitor these indicators closely as Bitcoin continues to navigate its path through the dynamic cryptocurrency landscape.