[Bitcoin rainbow chart predicts BTC price at the end of 2024]
Bitcoin (BTC) has been in a state of uncertainty over the past month. Bitcoin rallied significantly in early 2024, reaching an all-time high of nearly $73,000 in March, but entered a strong downtrend in June and early July. The drop was partly due to the German government’s planned sale of seized BTC and the repayment plan of the defunct Mt. Gox. Bitcoin has fallen below multiple support areas, unnerving many investors.
While Bitcoin is still up 32.44% year-to-date, it is down nearly 20% in the past 30 days of trading and is 23.09% off its yearly high. As of July 8, Bitcoin prices were stable in a range below $54,500 and above $56,000, with the next move unclear and currently sitting at $56,147.
In this climate of uncertainty, the Bitcoin Rainbow Chart provides valuable insights into predicting where the currency will go next in the crypto market. The rainbow chart uses a logarithmic growth curve and is divided into nine color areas. Each area represents a specific price range and market sentiment, from "Bitcoin is dead" to "Maximum Bubble Territory" .
According to this chart, the recent decline has brought Bitcoin between Accumulate and Still cheap, indicating that now is a good time to buy Bitcoin and predicting future highs. The Rainbow chart illustrates Bitcoin’s historical performance and provides insights into future prices.
If Bitcoin trades below $37,417.75 at the end of December, it means the current bull cycle may be over. Trading above $186,667.72 would suggest Bitcoin is a bubble, and sustained closings above $244,473.74 would almost guarantee this, meaning a major correction is imminent.
The rainbow chart shows that by the end of 2024, Bitcoin’s most stable price range is $85,730.33 to $112,983.27, the “hold” (HODL) range, which is relatively stable, but attention should be paid to the range between $112,983.27 and $144,774.1, which is considered It’s called the “Is this a bubble?” interval.
