Key Points
- Bitcoin [BTC] hit a new all-time high of $103.7k on 5 December, followed by high volatility and a price correction.
- The Bitcoin Rainbow Chart suggests that the bull run might still be in its early stages, with potential for extended BTC run.
Bitcoin [BTC] recently reached a new all-time high, hitting $103.7k on 5 December.
This peak was followed by significant volatility and a subsequent price correction to $90.5k.
Impact of Pro-Crypto Nomination
The nomination of Paul Atkins, a pro-crypto advocate, for the position of U.S. Securities and Exchange Commission (SEC) Chair could have contributed to Bitcoin’s price boost.
Despite these recent gains, the current bull run might still be in its infancy.
Bitcoin Rainbow Chart Analysis
As of now, Bitcoin’s price remains in the “accumulate” zone on the Bitcoin Rainbow Chart.
This is promising, considering that BTC just surpassed the significant psychological barrier of $100k.
In December 2020, Bitcoin was also in the accumulate zone, valued at $19k.
Six weeks later, the price had almost doubled, reaching $36k and entering the “HODL!” yellow zone.
If a similar pattern occurs during this cycle, the price could potentially hit $200k in the next six weeks.
However, given that Bitcoin’s price tends to appreciate less dramatically over the cycles, a $200k expectation might not be realistic.
Even with moderated expectations, the Bitcoin Rainbow Chart predicts BTC could trade at $150k six weeks from now.
If the “HODL!” yellow band is reached in March, the price of Bitcoin could potentially be $217k.
The current cycle might take longer to play out, potentially extending into May 2026 or beyond.
If this occurs, it would be a long-term bullish signal, as the Bitcoin Rainbow Chart predicts even higher prices for Bitcoin over the next 18 months.
Investors can conclude that Bitcoin is still a long way from this cycle’s targets, and should brace for a highly volatile journey.
The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
