Key Points
- Bitcoin remains in the accumulation zone, with the Bitcoin Rainbow Chart suggesting it’s a good time to buy.
- Bitcoin’s weekly chart shows a descending channel breakout, with price targets at $82k and $95.5k.
Bitcoin, at the time of writing, was still in the accumulation phase. This cycle’s price performance is a cause of excitement for long-term investors.
Rising Bitcoin
Bitcoin [BTC] seems to be on an upward trajectory again. Despite a bearish weekly structure, the move beyond the descending channel has given some hope to the bulls. The recent “Super Signal” is viewed as a strong bullish sign.
Data from Farside Investors indicates that the previous week experienced heavy inflows into Bitcoin spot ETFs. Despite these positive developments, the price of BTC remained below $70k.
Bitcoin Rainbow Chart
The Bitcoin Rainbow Chart offers an interesting perspective on the price fluctuations of Bitcoin across different cycles. It also serves as a tool to evaluate the current long-term bias and potentially predict the next cycle’s peak.
The chart employs a logarithmic scale to illustrate the various price bands of BTC, providing a quick insight into whether it’s a good time to buy. Interestingly, even though Bitcoin is less than 10% below its ATH, the Bitcoin Rainbow Chart suggests that it’s still in the “BUY!” zone. The risk is low when buying, and the mindset for investors should be to HODL.
In the previous cycle, Bitcoin hit a new ATH and then plummeted dramatically about 336 days post the halving date. It reached a new ATH approximately 18 months later. If a similar scenario occurs this cycle, Bitcoin could reach a high of $288k in March 2025 and enter the “Is this a bubble?” territory.
The Bitcoin Rainbow chart findings were significantly bullish. Bulls just need to HODL for another 6–9 months.
The technical analysis of the weekly chart revealed the descending channel breakout and the subsequent price targets. The targets for this move are $82k and $95.5k. The price has already retraced to the 61.8% retracement level. Breaking the series of lower highs, starting with $70k, would be a good initial step.