Uncertainty has surrounded Bitcoin (BTC) for the past month. After a significant rise in early 2024 and reaching a new all-time high (ATH) of just over $73,000 in March, the leading cryptocurrency entered a sharp decline in June and early July.
This downturn is largely attributed to several converging events, including the German government’s plans to sell seized BTC and the long-awaited repayments by the collapsed crypto exchange Mt. Gox. These factors have caused Bitcoin to break through multiple support levels, making investors wary.
Despite this, BTC remains up 32.44% year-to-date (YTD). However, it has dropped nearly 20% in the last 30 days and is currently 23.09% below its annual and all-time highs.
Key Insights:
- Bitcoin hit an ATH of over $73,000 in March 2024.
- June and early July saw a sharp decline due to factors like the German government’s BTC sale and Mt. Gox repayments.
- Bitcoin is still positive for the year but has seen a significant drop recently.
Bitcoin Stabilizes Between $54,500 and $56,000 Amid Uncertainty
By July 8, Bitcoin seems to have stabilized between just under $54,500 and slightly over $56,000, a range last seen in February. There’s still uncertainty about its next move. As of now, Bitcoin is priced at $56,147.
In this atmosphere of fear and uncertainty, the Bitcoin Rainbow Chart – a tool that uses a scale growth curve to reflect investor sentiment at different price levels – can provide valuable insights into Bitcoin’s potential next move in the crypto market.
The 2024 Bitcoin Rainbow Chart: Understanding Bitcoin’s Investor feelings towards the market.
The 2024 Bitcoin Rainbow Chart categorizes Bitcoin into nine colour-coded zones, each indicating specific price ranges and corresponding market sentiments. These range from ‘Bitcoin is dead’—signifying strong bearish sentiment—to ‘Maximum Bubble Territory’, which suggests prices are unsustainable and likely to drop.
Recent trends place Bitcoin between ‘Accumulate’, signalling a favourable time to buy more, and ‘Still cheap’, indicating prices expected to remain below future highs.
Bitcoin Rainbow Chart Forecasts Bitcoin Levels by Year’s End 2024
In addition to presenting Bitcoin’s historical performance and placing it in a market sentiment context, the Rainbow Chart also provides insights into the potential future prices of the world’s premier cryptocurrency.
According to the tool, if BTC falls below $37,417.75 by late December, it could signal the end of the current bull cycle and the onset of a strong crypto winter.
On the other hand, trading above $186,667.72 would suggest that Bitcoin is entering bubble territory, and sustained closes above $244,473.74 would almost certainly indicate a major correction is imminent.
Elsewhere, the Rainbow chart indicates that Bitcoin could see the most stability by the end of 2024 if it maintains a price range between $85,730.33 and $112,983.27 – known as the ‘HODL’ range. This range suggests relative stability, although investors should also monitor the range between $112,983.27 and $144,774.1, termed as the ‘Is this a bubble?’ range.
Additionally, the tool strongly advises investors to consider buying Bitcoin towards the end of 2024 if it trades within the zone between $50,768.84 and $65,962.8, identified as the ‘Accumulate’ range. Prices up to $85,730.33 are also seen as relatively affordable during this period.
Reference: finbold.com
