Bitcoin [BTC] has been gaining momentum once again. Despite maintaining a bearish weekly framework, breaking out of the descending channel has given bulls some optimism. The recent “Super Signal” displayed was considered a strong bullish indicator.
Information from Farside Investors indicated a substantial inflow into Bitcoin spot ETFs during the previous week. Despite these positive developments, the price of BTC has stayed below $70k.
Bitcoin Rainbow Chart Strongly Recommends Purchase
The Bitcoin Rainbow Chart offers a unique perspective on the price trends of the primary cryptocurrency throughout various cycles. It serves as a tool to assess the current long-term sentiment and potentially predict the peak of the next cycle.
By utilizing a logarithmic scale to depict BTC’s various price ranges, the chart provides a quick assessment of whether it is an opportune time to buy.
Interestingly, despite Bitcoin being just under 10% away from its all-time high, the Bitcoin Rainbow Chart indicates that it is still situated in the “BUY!” zone. This suggests a low buying risk, encouraging investors to adopt a HODL strategy.
During the prior cycle, Bitcoin achieved a new all-time high and experienced a significant drop approximately 336 days after the halving event. It then reached another all-time high about 18 months later.
If a similar scenario unfolds in this cycle, Bitcoin could peak at $288k by March 2025, entering the “Is this a bubble?” phase.
An In-depth Analysis of the Weekly Chart
The insights from the Bitcoin Rainbow Chart were overwhelmingly bullish, indicating that bulls may need to HODL for an additional 6–9 months.
Technical analysis of the weekly chart highlighted the breakout from the descending channel and the subsequent price objectives.
The price targets for this movement are set at $82k and $95.5k. The price has already retraced to the 61.8% retracement level, and surpassing the sequence of lower highs, commencing with $70k, would represent a significant initial milestone.