- Bitcoin has not even reached the “still cheap” section on the Rainbow Chart
- If the last cycle repeats itself, we could see $150k BTC by mid-January
Bitcoin [BTC] hit a new all-time high of $103.7k on 5 December, as predicted by a previous AMBCrypto report. High volatility followed this jump and a price correction to $90.5k was seen a few hours later.
Trump’s nomination of pro-crypto Paul Atkins for the spot of the U.S. Securities and Exchange Commission (SEC) Chair could also have boosted Bitcoin’s price. Despite these recent gains, however, the bull run might still be in its early stages.
Using the Bitcoin Rainbow Chart to explore the current scenario
Source: BlockchainCenter
At the time of writing, the price of Bitcoin was still in the “accumulate” zone on the Bitcoin Rainbow Chart. This was encouraging news as BTC just broke the $100k barrier, a monumental psychological level.
In the first week of December 2020, the price of Bitcoin had also been in the accumulate zone and was valued at $19k. Six weeks later, the price had nearly doubled and was trading at $36k, and was within the “HODL!” yellow zone.
Assuming that a similar scenario plays out during this cycle, we can expect the price to be at $200k in the next six weeks. We have seen that the price of Bitcoin appreciates less explosively over the cycles. So, a $200k expectation six weeks from now might not be realistic.
Read Bitcoin’s [BTC] Price Prediction 2024-25
And yet, it signified the fact that we are still quite early in this bull run.
Potential for extended BTC run
Even dialling the expectations down a notch on the Bitcoin Rainbow Chart, we would expect BTC to trade at $150k six weeks from now. Assuming the “HODL!” yellow band is reached in March, the price of Bitcoin can be predicted to be $217k.
In 2017, the cycle formed a top in December. In 2021, a top was formed in April and beaten in November. It could be that the current cycle takes an extended amount of time to play out, pushing it towards May 2026 or even later.
If this happens, it would be long-term bullish, for the Bitcoin Rainbow Chart predicted even higher prices for Bitcoin over the next 18 months.
One thing that investors can conclude is highly likely is that Bitcoin is still a long way from this cycle’s targets. Either way, expect it to be a highly volatile journey.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
