"Bitcoin's Bull Run: On-Chain Metrics, Uncertain Future and Hidden Bullish Divergences"

The cryptocurrency market is always awash with frenetic activity and startling developments. The latest story in this regard pertains to Bitcoin (BTC), the king of this cryptoverse, potentially transitioning into the final stages of a macro bull run as a key on-chain metric suggests. The Value Days Destroyed (VDD) metric, which has successfully predicted previous BTC price tops, indicates a rare high at this time.

For the uninitiated, VDD multiple compares on-chain spending to historical averages and helps to determine when a frenzied market psychology is pushing towards a distinct blow-off top for the price. The value days destroyed component involves counting the number of days for which coins remained dormant before being used on-chain.

The story becomes noteworthy here, particularly because of its implications for the future. When the VDD multiple hit a similar level in March, around 3.5, renowned analyst TXMC deemed it overheated. But as analysts are wont to do, he also furnished a caveat, emphasizing that it wasnt entirely flawless but was nevertheless worth noting.

The present scenario, intriguingly, deviates from the precedent set in 2021. During the last surge of the VDD multiple, BTC/USD had already doubled its previous high of $20,000. In contrast, this value is being printed in 2024 while the benchmark remains at the previous all-time high, indicating a cloud of uncertainty haze looming over the market.

However, not all hope is lost for the most ardent Bitcoin optimists. Cautiously optimistic pointers like the Relative Strength Index (RSI) offer promising cues. The RSI, a technical momentum indicator that compares the magnitude of recent gains to recent losses, has recently reset itself to the levels last seen in late January. As per Cointelegraph’s data, the daily RSI was 53 (far below the traditional overbought” zone of 70) on April 10 - something that usually precedes significant BTC price cycle gains.

Further reiterating this favourable omen is Alan Tardigrade, a popular trader. He points out a hidden bullish divergence with the price on 4-hour RSI timeframes. This phenomenon occurs when BTC makes a higher low (HL), but RSI indicates a lower low (LL), thus signifying a likely uptick of the uptrend.

Those monitoring the monthly timeframes with keen eyes will recognize how they continue to hold above 70, a noteworthy detail, per controversial analyst Plan B and others, in anticipation of Bitcoin’s forthcoming block subsidy halving.

While the future unfoldings within the cryptoverse remain largely guesswork, these subtle patterns and discourses around BTC prompt investors, traders, and observers to stay alert, informed and always ready for unexpected turns.

Disclaimer: This article does not offer investment advice or recommendations. Every investment and trading undertaking involves risk. Readers should conduct their own research and weigh these factors before making a decision.