Bitcoin surged to a record high of $103.7k on December 5, in line with forecasts from a previous Crypto report. Following this rise, the market experienced significant volatility, leading to a price correction to $90.5k a few hours later.
The nomination of pro-crypto figure Paul Atkins by Trump for the role of the U.S. Securities and Exchange Commission (SEC) Chair could have contributed to the upward momentum in Bitcoin’s price. Despite these recent gains, indications suggest that the bullish trend might only be in its initial phases.
Exploring the Current Situation with the Bitcoin Rainbow Chart
As of now, Bitcoin’s price remains situated within the “accumulate” zone on the Bitcoin Rainbow Chart. This is positive news given the recent breakthrough of the $100k threshold, which holds great psychological significance.
In the initial weeks of December 2020, Bitcoin was also positioned within the accumulate zone, with a value of $19k. Over six weeks, the price nearly doubled, reaching $36k and entering the “HODL!” yellow zone.
If a similar pattern unfolds in this cycle, the price could potentially climb to $200k in the next six weeks. However, considering that Bitcoin’s price appreciation tends to be less explosive across cycles, the $200k projection might not be entirely realistic in the short term.
Nevertheless, this suggests that we are still in the early stages of the current bull run.
Anticipated Prolonged Bull Run for Bitcoin
Even with a more conservative outlook based on the Bitcoin Rainbow Chart, the expectation is for Bitcoin to be valued at $150k in six weeks. Should Bitcoin reach the “HODL!” yellow band in March, the price could potentially escalate to $217k.
The previous cycle in 2017 peaked in December, while in 2021, the peak arrived in April and was surpassed in November. It is plausible that the current cycle might take a longer duration to unfold, possibly extending into May 2026 or beyond.
If this scenario materializes, it could offer long-term bullish prospects, with the Bitcoin Rainbow Chart projecting even higher price targets for Bitcoin in the coming 18 months.
Investors can reasonably infer that Bitcoin has not yet reached its full potential within this cycle. Nevertheless, they should brace for a volatile journey ahead.
Disclaimer: The opinions shared in this content are personal and do not provide financial, investment, or trading advice.