Endof2024 Bitcoin Price Forecast Offered by Rainbow Chart
Bitcoin has been surrounded by a significant amount of uncertainty for the past month. After experiencing a notable increase in the early months of 2024 and reaching a new all-time high of just over $73,000 in March, the leading cryptocurrency has entered a strong downward trend in June and early July.
The decline in Bitcoin’s price is believed to be influenced by various factors, including the German government’s plan to sell seized BTC and the long-awaited repayments from the collapsed crypto exchange Mt. Gox. However, what has particularly concerned investors is the fact that Bitcoin has broken through multiple support levels.
Although BTC is still up by 32.44% year-to-date, it has dropped nearly 20% in the last 30 days of trading and is currently 23.09% below its yearly and all-time highs.
As of July 8, Bitcoin appears to have stabilized within the range of just below $54,500 to just above $56,000, which are levels not seen since February. There is uncertainty about whether the next move will push the price higher or lower. At the time of writing, Bitcoin is priced at $56,147.
In this uncertain climate, the Bitcoin Rainbow Chart offers valuable insights into the possible future movements of the cryptocurrency in the market. The chart utilizes a logarithmic growth curve and categorizes investor sentiment based on different price ranges.
The Rainbow Chart is divided into nine color-coded zones, each representing a specific price range and associated market sentiment. These zones range from “Bitcoin is dead” (indicating strong bearish sentiment) to “Maximum Bubble Territory” (indicating unsustainable high prices).
According to the chart, the recent downtrend has brought Bitcoin to the border between the “Accumulate” zone (suggesting it is a good time to buy more) and the “Still cheap” zone (predicted to be well below BTC’s forthcoming highs).
The Rainbow Chart also provides insights into the potential future prices of Bitcoin. If BTC falls below $37,417.75 by late December, it suggests that the current bull cycle may be coming to an end and that a crypto winter is approaching. On the other hand, trading above $186,667.72 would indicate a bubble, while sustained closes above $244,473.74 would almost guarantee a major correction.
Additionally, the Rainbow Chart suggests that Bitcoin would be most stable at the end of 2024 if it remains within the range of $85,730.33 and $112,983.27 (the “HODL” range). However, investors should also keep an eye on the range between $112,983.27 and $144,774.1 (the “Is this a bubble?” range).
Finally, the chart strongly suggests that buying Bitcoin near the end of 2024 would be a wise decision if it trades within the zone of $50,768.84 and $65,962.8, as it is categorized as “Accumulate,” although prices up to $85,730.33 would still be considered relatively cheap.
Disclaimer: The content of this article should not be considered as investment advice. Investing in Bitcoin carries risks, and your capital is at risk.