Bitcoin Rainbow Chart predicts Bitcoin will hit $250,000 – will it materialize?

  • Exciting News: The Bitcoin Rainbow Chart is signaling a big “BUY!” for BTC!
  • While there’s been some bearish sentiment recently, the potential for further price drops cannot be ignored.

Bitcoin [BTC] is hovering around the $60k support level once more. Just a couple of months back, it tested this level after a sharp drop to $56k.

Back then, fear gripped the market as investors tread carefully. The same cautious sentiment seems to linger.

Despite short-term bearishness, the overall trend remains strongly bullish. Over the past six months, Bitcoin has seen a remarkable 55% increase from its late January lows at $38.5k.

With a higher low established at $56.5k, this level becomes crucial for buyers to defend in the weeks ahead.

The Bitcoin Rainbow Chart suggests that now is a fantastic opportunity to purchase Bitcoin. This chart, based on a logarithmic scale, can aid investors in anticipating potential cycle peaks.

Decoding the Cycle Peak with the Bitcoin Rainbow Chart

<img aria-describedby="caption-attachment-402156" decoding="async" class="size-full wp-image-402156" src="https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed.png" alt="Bitcoin Rainbow Chart" width="1845" height="846" srcset="https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed.png 1845w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed-300×138.png 300w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed-1024×470.png 1024w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed-768×352.png 768w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed-1536×704.png 1536w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-rainbow-chart-compressed-1200×550.png 1200w" sizes="(max-width: 1845px…

Source: Blockchain Centre

The vibrant chart spans from “Bitcoin is dead” to “Maximum bubble territory”. Currently, BTC finds itself in the emphatic “BUY!” zone.

According to the chart, there’s still plenty of runway left for this cycle’s price discovery to unfold.

Building on past trends, AMBCrypto forecasts that the cycle peak typically occurs 17-18 months post-halving. By extrapolating this to the current cycle, we could see a peak around September or October 2025.

In 2021, BTC didn’t breach the “Is this a bubble?” phase. This time, a conservative estimate suggests Bitcoin might not surpass the “HODL” territory.

Even with this conservative approach, Bitcoin could hit $260k, potentially spiking to $373k if it enters the “Is this a bubble?” territory.

So, mark your calendars: Sell Bitcoin when it crosses $250k in September 2025.

However, keep in mind, this is all conjecture based on the Bitcoin Rainbow Chart and historical halving events.

For a more accurate assessment, investors should delve deeper into price action and on-chain metrics to better pinpoint the cycle top.

Signs of Buyer Weakness Surfaced

Bitcoin Coinbase Premium Index<img aria-describedby="caption-attachment-402154" decoding="async" class="size-full wp-image-402154" src="https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compressed.png" alt="Bitcoin Coinbase Premium Index" width="2560" height="1440" srcset="https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compressed.png 2560w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compressed-300×169.png 300w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compressed-1024×576.png 1024w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compressed-768×432.png 768w, https://ambcrypto.com/wp-content/uploads/2024/06/MD-3-BTC-CB-premium-compress…

Source: CryptoQuant

In the past month, the Coinbase Premium Index has been in the negative, indicating lower prices on the Coinbase market compared to Binance USDT Bitcoin pair by nearly 0.1%.

This suggests reduced interest from U.S. investors in Bitcoin over the last six weeks. Earlier in March and April 2024, the Index mostly showed positive values, reflecting a considerable shift in sentiment.

Bitcoin Open Interest Bitcoin Open Interest

Source: CryptoQuant

Additionally, Open Interest (OI) sharply declined, standing at $16.5 billion with a 14.6% drop in prices as of press time from the $19.1 billion on June 6th.

This drop indicates that futures market participants are opting to stay on the sidelines, reluctant to long BTC amidst the recent downtrend.

In the long term, this could be advantageous as it rids the market of overly leveraged bulls, reshaping price trends toward a more stable, spot-oriented direction.

AMBCrypto also noted a negative trend in Bitcoin ETF inflows according to data from Farside Investors. This recent development contrasts starkly with the scenario in early June, underscoring a shift in market sentiment.

Explore Bitcoin’s [BTC] Price Prediction 2024-25

In a recent update, AMBCrypto pointed out that the ongoing price dip could potentially deepen further.

With news about Mt. Gox and repayments to clients affected by a theft a decade ago, there are multiple factors contributing to the tough spot in the crypto market sentiment.

Next: ‘Mt. Gox repayment FUD’ affects Bitcoin: What will save BTC now?

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