By Chris Hollingworth 
Bitcoin’s Recent Price Rally Raises Concerns
Bitcoin’s recent surge in price has caught the attention of many investors, with technical indicators starting to show signs of potential overheating. The price of BTC has been on a steady upward trend in recent weeks, reaching new highs and breaking through key resistance levels.
However, when we look at onchain data, a different picture emerges. Despite the overheating signals from technical indicators, onchain data suggests that there is still room for further growth in Bitcoin’s price. The number of active addresses on the Bitcoin network has been increasing, indicating growing interest and adoption of the cryptocurrency.
Additionally, the amount of Bitcoin held on exchanges has been decreasing, suggesting that investors are moving their holdings off exchanges and into cold storage for long-term holding. This trend could potentially reduce selling pressure on the market, leading to a more sustained price rally.
Overall, while technical indicators may be signaling potential overheating in Bitcoin’s price, onchain data paints a more optimistic picture. Investors should consider both sets of data when making decisions about their Bitcoin holdings.
