- Bitcoin was still in the accumulation zone at the time of writing.
- Long-term investors have good reasons to be excited about this cycle’s price movements.
Bitcoin [BTC] was on the rise again. Although there was still a bearish weekly structure, the move past the descending channel gave the bulls some hope. The “Super Signal” that flashed recently was seen as a strong bullish sign.
Source: Farside Investors
Data from Farside Investors shows that there have been large inflows into Bitcoin spot ETFs over the past week. These positive developments kept the price of BTC below $70,000.
Bitcoin Rainbow Chart makes a strong case for buying
The Bitcoin Rainbow Chart is a fun way to view the price movements of the king of crypto in different cycles. It also acts as a tool that can be used to assess current long-term biases and potentially predict the top of the next cycle.
The chart uses a logarithmic scale to display the different price ranges of BTC and provides a quick insight into whether it is a good time to buy.
Surprisingly, even though Bitcoin is less than 10% below its ATH, the Bitcoin Rainbow Chart revealed that it is still in the “BUY!” zone. The risk in buying is low and the mindset of investors should be HODL.
In the previous cycle, Bitcoin reached a new ATH and fell dramatically about 336 days after the halving date. About 18 months later it reached a new ATH.
If a similar scenario plays out this cycle, Bitcoin would reach a high of $288,000 in March 2025 and enter the “Is this a bubble?” end up. territory.
A closer look at the weekly chart
Source: BTC/USDT on TradingView
The findings from the Bitcoin Rainbow chart were extremely bullish. Bulls only need to use HODL for another 6 to 9 months.
Read Bitcoin’s [BTC] Price forecast 2024-25
Technical analysis of the weekly chart showed the breakout of the descending channel and subsequent price targets.
The $82k and $95.5k are the targets for this move. The price has already returned to the 61.8% retracement level. Breaking the streak of lower highs starting at $70,000 would be a good first step.