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The Bitcoin Rainbow Chart is a well-known long-term logarithmic price model that helps visualize Bitcoin’s price movements across different market phases, from undervalued accumulation zones to speculative bubble territory. By analyzing its historical trends, we can better understand where Bitcoin currently stands and where it might be headed next.

Bitcoin Price Analysis Based on the Bitcoin Rainbow Chart: Is $250,000 Next? — Source: Blockchain Center

✅ Color-coded market phases:

Blue – “Fire Sale” → Historically the best buying opportunity.
Green – Accumulation phase → A good time to buy.
Yellow to orange – FOMO, bubble formation → Moderate to high risk.
Red – “Maximum Bubble Territory” → Historically marks market cycle peaks.

Bitcoin’s Current Status

According to the chart, Bitcoin is currently priced around $95,000, placing it in the green-yellow zone (“Accumulate / HODL!”).

Bitcoin price range according to the model:
- Lower boundary: $39,509
- Upper boundary: $346,464
- Current price of $95,000 suggests that BTC is still in an accumulation zone but approaching a speculative phase.

Bitcoin Price Prediction for the Coming Months

1️⃣ Bullish Scenario (Continued Uptrend)

If BTC breaks above $100,000, it could accelerate towards $150,000 – $200,000 in the next phase.
In an extreme bull market, BTC could enter the “Maximum Bubble Territory” ($250,000 – $350,000) by the end of 2025.

2️⃣ Bearish Scenario (Correction and Reaccumulation)

If BTC fails to hold the $90,000 – $100,000 range, a pullback to $70,000 – $80,000 could occur.
This would align with previous cycles, where Bitcoin briefly corrected after exiting the accumulation phase before resuming its uptrend.

Trading Strategy & Recommendations

✔ Long-term Investors (HODLers)

The current price still has room for growth, but risk increases as BTC moves towards the FOMO zone.
Gradually securing profits if BTC reaches $150,000+ could be a smart risk-management approach.

✔ Short-term Traders

If BTC breaks above $100,000, watch for increased trading volume and FOMO, which could drive the price even higher.
A pullback to $80,000 – $90,000 could present a strong buying opportunity before the next rally.

Bitcoin Price Analysis Based on the Bitcoin Rainbow Chart – Conclusion

Bitcoin is currently transitioning from an accumulation phase to a potential bubble cycle. Based on historical trends, the market could continue climbing, but key levels at $100,000 and above must be closely watched.

Price Outlook:

Bullish scenario: Potential peak at $250,000 – $350,000 in 2025.
Bearish scenario: A correction to $80,000 – $100,000 before the next leg up.

Best strategy? Monitor market sentiment, take profits gradually in extreme rallies, and prepare for possible volatility.

Author
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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.