Bitcoin Rainbow chart predicts BTC price for 2025
Bitcoin Rainbow chart predicts BTC price for 2025 
Cryptocurrency Aug 19, 2024 Share
Despite decisively losing its multi-month stable levels near $67,000 and even dropping below $50,000 for short periods of time, Bitcoin (BTC) has shown significant resilience in retaining the range between approximately $58,000 and about $60,000.
Indeed, though BTC is 11.95% in the red in the 30-day chart due to substantial volatility and selling pressure in early August, most recent trading has shown a trend for stabilization. Additionally, with Bitcoin price today, at press time, being at $58,546, the coin remains a 38.53% up year-to-date (YTD), thus leaving substantial room for optimism about its performance in the longer time frames.
BTC 30-day price chart. Source: Finbold
With both the downward pressure of recent months – downward pressure that has seen BTC experience major short-term drops during the summer of 2024 – and the room for further growth in the longer time frames, Finbold decided to examine the Bitcoin Rainbow Chart to help gauge where the cryptocurrency can stand at the onset of 2025.
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The 2024 Bitcoin Rainbow chart
The Bitcoin Rainbow Chart is a tool that utilizes a logarithmic growth curve and describes investor sentiment at various price levels.
It is divided into nine color-coded zones, each representing a certain price range and the associated market sentiment.
These range from ‘Bitcoin is dead’ – lows that indicate that severe bearish sentiment prevails – to ‘Maximum Bubble Territory’ – highs that are so high that the cryptocurrency’s price is likely to plummet.
Bitcoin’s crypto market moves throughout August have placed the coin at the very border between the ‘still cheap’ and ‘accumulate’ zones, indicating that BTC is likely to stay at press time prices for some time but also that its next major move is most likely to be upward.
Bitcoin Rainbow chart zones for early 2025. Source: BlockhainCenter
Bitcoin Rainbow chart predicts Bitcoin ranges for 2025
Looking ahead, should Bitcoin be anywhere below $66,199.24 at the start of 2025 – the designated lower bound of the ‘still cheap’ zone on January 2 – it would be likely that the coin has either spent the rest of 2024 trading sideways or that its most recent move prior to the New Year has been a plunge.
Under both circumstances, the bull case for BTC could be invalidated, given the expectations of a continued 2024 boom prevalent among many investors and experts as of August 19, 2024. Still, the actual interpretation of such a price level would depend on the state of the broader market
On the other hand, if Bitcoin finds itself trading above $145,265.67 – the ‘FOMO intensifies’ zone – it is likely that the cryptocurrency will experience a frenzied yet deeply unstable rise in the initial weeks of 2025. Simultaneously, trading above $187,289.67 would most likely serve as a harbinger of an imminent collapse.
Finally, if Bitcoin is between $86,032.22 and $113,373.77 at the start of 2025, it would likely mean that the cryptocurrency has found a higher stable footing indicative of a new strong support zone and could constitute fertile ground for significant upsides later in the year.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
