$BTC

The once-often-used Bitcoin Rainbow Chart points to the potential for the BTC price to rise to $500,000 in this bull cycle.

The leading cryptocurrency Bitcoin broke a new record amid US President Donald Trump's statements regarding the strategic Bitcoin reserve. The BTC price reached an all-time high, exceeding $ 106,500 during the night hours.

In the BTC bull market that accelerated towards the end of 2024, new price targets have begun to be determined. AMBCrypto announced that the Bitcoin Rainbow Chart, one of the most notable indicators of the 2021 bull, points to $ 500,000. The analysis highlighted the positive momentum provided by institutional investments and the positive news flow from the USA.

Bitcoin Rises on Institutional Demand
Bitcoin is drawing attention with positive macroeconomic trends and the growth of blockchain technology. The BTC price continues to rise with a healthy growth process.

According to AMBCrypto’s analysis, the Bitcoin Rainbow Chart is indicating a super rally that could reach up to 400% this cycle. The analysis included the following statements:

“Since November, critical indicators and evolving market dynamics for Bitcoin have been heralding new highs. The conditions necessary for BTC to reach $500,000 are slowly taking shape.” The developments that Bitcoin has shown since November have led to its greater adoption as a financial asset. In particular, the interest of countries’ reserve plans and retirement funds in Bitcoin has drawn attention.

BlackRock’s iShares IBIT Bitcoin ETF (IBIT) has generated over $17 billion in net inflows. The rise in institutional demand suggests that it will not be easy for BTC to fall from its peak. Spot Bitcoin ETFs strengthen the bridge between traditional finance and cryptocurrencies by increasing available liquidity.

The Bitcoin Rainbow Chart shows parabolic rallies that have broken through the “Max Bubble Zone” marked in red. This chart signals a new rally. “If Bitcoin reaches the red zone of the rainbow again, it could signal a more sustained and stable supercycle rather than a speculative top burst.”

AMBCrypto stated that the Bitcoin Rainbow Chart in the 2021 cycle had a different course. At that time, the BTC price had started to decline without reaching the red zone. The analysis stated that there was a positive deviation in BTC in 2021 and the long consolidation period has now started to yield results.