Bitcoin’s Relative Strength Index suggests short-term gains as metric indicates potential price peak for BTC.

Bitcoin (BTC) may be approaching the end of its bull run, according to a reliable on-chain metric. The value days destroyed (VDD) multiple, which has accurately predicted previous BTC price tops, has reached a “rare” high. Despite expectations of BTC reaching new all-time highs, analysts studying on-chain signals are becoming concerned. Analyst TXMC, who runs the YouTube channel Alpha Beta Soup, shared updated VDD multiple data this week, revealing that the chart had reached levels seen only before major BTC/USD tops. This “rare 4.0 print” has raised concerns about market psychology dictating a blow-off top for price. The VDD multiple compares on-chain spending to historical averages to determine market sentiment. In March, when the VDD multiple was around 3.5, TXMC already considered it “overheated.” However, this year is different from early 2021, as BTC/USD has not yet surpassed its previous all-time high. Traders are cautiously optimistic due to other chart metrics, such as the relative strength index (RSI), which recently reset to levels last seen in late January. The daily RSI currently stands at 53, far from the overbought zone typically associated with the peak of BTC price cycles. Traders Jelle and Alan Tardigrade have noted promising signals on RSI timeframes, including a possible uptrend continuation. Monthly timeframes also indicate that BTC is holding above 70, which is significant for analysts anticipating Bitcoin’s upcoming block subsidy halving.