The Bitcoin Rainbow chart sets the BTC price for the end of 2023
After breaching the psychological level of $30,000, the price of Bitcoin (BTC) has moved in a sideways trend over the past week before returning below this important threshold, leaving investors to wonder in which direction the flagship decentralized finance (DeFi) the asset can be. moves next.
To help them identify potential trends in Bitcoin’s price movements, some of these cryptocurrency traders turn to BlockchainCenter rainbow price chart, which shows the virgin digital asset’s historical movements against various moving averages (MA).
As things stand now, the rainbow chart suggests that Bitcoin is currently in the ‘accumulate’ phase, which is indicated by the dark green color. This phase is currently in the Bitcoin price range between around $27,959 and $36,702, according to data obtained on April 17.
Estimates for the end of the year
In its most bullish scenario (dark red) for the end of 2023, the rainbow chart identifies the area between $180,311 and $245,016 as the ‘Maximum Bubble Territory’ for Bitcoin, as opposed to the most bearish scenario (dark blue) of $20,036 – $26,486, which is defined as ” Basically a fire sale” on 31 December 2023.
In fact, if Bitcoin’s rainbow chart is to follow past patterns, this means it could end up in ‘Maximum bubble territory’ by the end of the year, considering that the same thing happened in 2017 when BTC rose from the ‘Accumulate” phase in May to the ‘Maximum Bubble Territory’ in December.
Bullish summer?
As for early summer 2023, the chart projects a range between $151,924.74 and $207,035.58 for Bitcoin, which it refers to as “Maximum Bubble Territory”. The most bearish scenario expects Bitcoin to trade between $16,443 and $21,807 on June 21, 2023, calling it “Basically a fire sale.”
In 2020, the ‘accumulation phase’ was a bit longer, lasting from May to October, and Bitcoin failed to climb to the maximum. However, it came pretty close – in ‘Sell. Seriously. Sell!’ area within just four months – in February 2021 and to stay there, alternating with the “FOMO intensifies” phase, until August, indicating that the summer of 2023 could be crucial for Bitcoin as it could reach $114,957 – $151,925.
Bitcoin price analysis
At press time, Bitcoin was trading at $29,904, recording a 1.37% drop on the day, but still holding on to gains of 5.47% last week and 8.87% over the past 30 days, while it has up nearly 80% on the year-to-date (YTD) chart.
Whether Bitcoin really manages to climb to the area above $100,000 by the end of 2023 (or earlier) will depend on many factors, including the general atmosphere of the crypto industry, which itself is under the influence of developments such as the regulatory attitude towards it, as well as the outcome of the important court cases in the sector.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
