According to Lookonchain, Bitcoin (BTC) reached a new all-time high last week, sparking trader interest in whether the price will continue to climb or begin a correction. Lookonchain used four indicators, including the Rainbow Chart from blockchaincenter.net, to analyze BTC's current cycle top. The Rainbow Chart, a long-term valuation tool based on logarithmic growth, suggests BTC is entering a historically overvalued zone, which has preceded previous cycle tops (source: Lookonchain Twitter, blockchaincenter.net). Traders are advised to closely monitor these indicators for signs of trend reversal or continuation, with heightened volatility expected. Understanding these on-chain analytics and technical signals is critical for managing risk and identifying entry or exit points in the crypto market.

According to Lookonchain, Bitcoin (BTC) reached a new all-time high last week, prompting traders to question whether the upward momentum will persist or if the market is peaking. Lookonchain cited four technical indicators, starting with the Rainbow Chart from blockchaincenter.net, which applies a logarithmic growth model to assess long-term valuation zones for BTC. This model currently places BTC in a significant valuation band, suggesting traders should watch for potential overbought conditions. Trading strategies can leverage such data to identify optimal entry and exit points given the historical accuracy of these indicators in signaling trend reversals. The focus on real-time, data-driven analysis is critical as high volatility persists in the crypto market. (Source: Lookonchain Twitter, blockchaincenter.net)