The Bitcoin RSI Indicates Short-Term Gains As The Metric Signals The Top Of The BTC Price

The Value Days Destroyed Multiple suggests a potential macro top in the BTC price, but appearances may be deceiving.

Source: www.yenisafak.com

Bitcoin may be entering the final stages of a macro bull run, according to a historically accurate on-chain metric. The Value Days Destroyed (VDD) multiple, which has accurately forecasted previous BTC price peaks, has reached an unusually high level.

The VDD Multiple Reaches An Unusually High Level

Bitcoin has yet to establish firm support by surpassing either new all-time highs or its previous peak from 2021. While some maintain optimism regarding Bitcoin's price discovery potential, those who analyze on-chain signals are growing apprehensive. Recent data uploaded to X this week regarding the VDD multiple indicated that the chart displayed levels typically observed just before BTC/USD reaches macro peaks. The accompanying commentary noted the rare 4.0 print. The VDD Multiple compares on-chain spending to historical averages to identify when market sentiment is driving a blow-off top in prices. The value days destroyed component indicates the duration of time coins remained inactive before being spent on-chain.

Back in March, when the VDD multiple reached around 3.5, analysts were already noting its overheated status. “While not flawless, it's noteworthy”, that he emphasized at that time. However, a key distinction exists between this year and early 2021. During the last spike of the VDD multiple, BTC/USD had already doubled its previous all-time high of $20,000. “In contrast, in 2024, we're observing the same value while still at the prior all-time high”, the analyst added, suggesting an uncertain overall outlook.

After The Flush The RSI Maintains Crucial Support

Other chart metrics have been providing traders with reasons for cautious optimism. These include traditional indicators like the relative strength index (RSI), which recently experienced a reset to levels last seen in late January. As of April 10, the daily RSI stood at 53, according to data from, still significantly below the typical overbought threshold of 70. This level often coincides with the sharpest gains in the BTC price cycle.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.