Key Points
- The Bitcoin Rainbow Chart and other metrics indicate a ‘BUY’ signal for Bitcoin at its current value.
- Market experts predict a bullish Q4 and 2025 for Bitcoin, suggesting a great buying opportunity.
Bitcoin [BTC] has been maintaining a steady range between $60K and $70K for the past seven months. Despite the lack of significant price movement, the current BTC value is considered a lucrative buying opportunity ahead of a potentially bullish Q4.
According to the Bitcoin Rainbow Chart, BTC’s current value falls within the ‘buy’ zone. This chart measures BTC valuation based on historical prices, displayed visually through a spectrum of colors. Lower bands indicate undervalued BTC, while higher bands suggest an overheated market and potential corrections.
Is BTC still discounted?
Other key valuation metrics also suggest that BTC is relatively ‘cheap’ at its current value. The Pi Cycle Top indicator, for example, shows BTC is far from hitting this cycle’s top, as indicated by the wide gap between the 111-day MA (Moving Average) and 350-day MA multiple (350 DMAx2).
The Pi Cycle Top metric has effectively captured BTC cycle tops with a 3-day accuracy in the past. Cycle tops have historically been reached after the 111 DMA surged and crossed the 350DMAx2. The wide gap at present suggests BTC’s bull run could continue.
Similarly, the Puell Multiple, which assesses whether BTC is overpriced using BTC miners’ profitability, also suggests that BTC is currently undervalued. According to the current reading of 0.73, BTC is significantly underpriced, indicating a great buying opportunity for investors.
Bullish Predictions for 2024 and 2025
Apart from these valuation metrics, key industry figures and firms have projected high BTC price targets for the end of 2024 and 2025. Standard Chartered Bank has predicted that the asset could reach $250K by 2025.
CK Zheng, founder of crypto-focused hedge fund ZX Squared Capital, believes BTC will hit an all-time high in Q4 2024, irrespective of the US election results. He cites high US national debts and fiscal deficits as reasons why BTC will become more attractive during the Fed rate cut cycle.
If these predictions are accurate, Q4 2024 and 2025 could yield significant BTC returns, potentially breaking the 7-month long price range. This suggests that the current BTC value could be significantly discounted.
