Predictions for Bitcoins endof2024 price using the Bitcoin Rainbow chart
Bitcoin (BTC) has experienced a period of uncertainty in recent months. After reaching an all-time high of over $73,000 in March, the cryptocurrency has faced a significant downtrend in June and early July. This decline can be attributed to various factors, including the German government’s plans to sell seized BTC and the long-awaited repayments from the collapsed crypto exchange Mt. Gox. The fact that Bitcoin has broken through multiple support zones has made many investors cautious. While BTC is still up 32.44% this year, it has fallen nearly 20% in the last 30 days and is 23.09% below its yearly and all-time highs.
As of July 8, Bitcoin appears to have stabilized between $54,500 and $56,000, levels not seen since February. The future direction of the cryptocurrency remains uncertain. In this climate of fear and uncertainty, the Bitcoin Rainbow Chart can provide valuable insights into its potential movements in the crypto market.
The Bitcoin Rainbow Chart categorizes price levels into nine color-coded zones, each representing a specific price range and associated market sentiment. These zones range from extreme bearish sentiment, indicating that “Bitcoin is dead,” to extreme bullish sentiment, indicating a bubble that will likely burst. The recent downtrend has brought Bitcoin to the border between the “Accumulate” zone, suggesting it’s a good time to buy more, and the “Still cheap” zone, which predicts prices well below future highs.
In addition to analyzing historical performance, the Rainbow Chart also provides insights into future price ranges for Bitcoin. If BTC falls below $37,417.75 by late December, it could indicate the end of the current bull cycle and the onset of a crypto winter. On the other hand, trading above $186,667.72 would suggest a bubble, while sustained closes above $244,473.74 would almost guarantee a major correction.
The Rainbow Chart also indicates that Bitcoin would be most stable at the end of 2024 within the range of $85,730.33 to $112,983.27, known as the “HODL” range. Investors should also keep an eye on the range between $112,983.27 and $144,774.1, labeled as the “Is this a bubble?” range. Lastly, the chart suggests that buying Bitcoin between $50,768.84 and $65,962.8 near the end of 2024 would be a wise decision, as it falls within the “Accumulate” zone, although prices up to $85,730.33 are still considered relatively cheap.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.
