Many investors are predicting that Bit (BTC) will soon reach the $100,000 mark in the near future. Meanwhile, others are skeptical of the price increase and are waiting for an adjustment. Predicting a short-term peak in a FOMO (Fear of Missing Out) is not an easy task, and can even be risky.
However, some indicators and data-driven evidence will provide useful insights. Here are the summaries and observations from BeInCrypto on these signals.
Also Read: Bit struggles to regain $90,000 due to increased profit-taking
#1. Technical Signal: Monthly RSI has accurately predicted past peaks
The observation by @thescalpingpro is worth considering, as it highlights the effectiveness of the monthly RSI signal. RSI is a relative strength index, a popular technical indicator used to measure the overbought or oversold condition of an asset's price. RSI has a trendline characteristic.
Bit price and monthly RSI indicator. Source: @thescalpingproThe RSI trendline in the monthly timeframe has accurately predicted the peak of a Bit FOMO. The suggestion from @thescalpingpro is that when the RSI touches the mentioned trendline, Bit price will enter a strong correction phase. At that point, Bit could reach the $220,000 region.
#2. On-Chain Signal: PnL Index Cyclical Signal
This signal is proposed by Ki Young Ju, CEO of CryptoQuant. He believes that the FOMO-driven price increase is unpredictable and acknowledges that his prediction of a Bit correction at the end of this year was wrong.
"It seems my year-end Bit correction prediction was wrong. The craziness has no limit, and the bubble has no limit. From now on, I'll just enjoy the uptrend until a bearish signal appears." - Ki Young Ju commented.
The bearish signal he mentioned is the PnL Index Cyclical Signal. This is an on-chain alert that combines various on-chain indicators such as MVRV, SOPR, and others.
Bit PnL Index Cyclical Signal. Source: CryptoQuant.90 days after the PnL (Profit and Loss) enters the loss phase, the indicator will signal that Bit price is entering a downtrend. In this way, the Bit PnL Index Cyclical has provided relatively accurate predictions on several occasions from 2014 to the present.
#3. Combined Technical and On-Chain Indicator: CBBI
CBBI is an index that combines 9 different signals, including both technical and on-chain signals. According to this, when CBBI reaches above 90 points, it marks the region where Bit price is about to undergo a significant correction. This signal has predicted the peaks of the last 3 cycles at least 3 times. Interestingly, CBBI has also accurately predicted the Dips of previous cycles.
CBBI composite indicator. Source: colintalkscryptoAt the time of writing, CBBI is currently at 78 points. This suggests that Bit has not yet found its peak.
#4. Fear and Greed Index
The Fear and Greed Index is a fairly familiar indicator for many investors. Many investors often apply it based on the philosophy of "being fearful when others are greedy". There are two main sources for investors to track this index, first from Alternative and second from CoinMarketCap.
Fear and Greed Index. Source: CoinMarketCap.Typically, when this index exceeds 90 points, the market is in a state of extreme greed, which is when there is a high likelihood of a significant Bit correction. Data from both sources consistently signals this. The past has shown that in March 2024, when the Fear and Greed Index exceeded 90, Bit began to peak at over $73,000. At the time of writing, this index has reached 84 points.
All of the above signals may have some differences in timing and price levels, but they are all consistently indicating that: Bit is in a strong uptrend and still has the potential to continue rising higher.
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