Bitcoin to $490,000 Possible? The Future According to the Rainbow Chart

▲ Bitcoin (BTC) Investment ©Go Dasol

An extreme forecast suggesting Bitcoin (BTC) could reach up to $490,000 by the end of May has been presented, bringing renewed attention to price distribution based on market cycles.

According to crypto media outlet Finbold on May 2 (local time), the Bitcoin Rainbow Chart projected a BTC price range from approximately $59,136 to a maximum of $491,369 by May 31, 2026. This model is a log-based valuation that analyzes market sentiment by dividing it into color zones, from undervalued to bubble phases.

Looking at the zones, the 'Fire Sale' area, corresponding to 'extreme undervaluation,' was presented at $59,136, the 'Buy Zone' at $79,604, and the 'Accumulate Zone' at $102,629. Following these, the 'Still Cheap' zone was analyzed at $132,354, and the 'HODL' zone at $173,035.

The 'Is this a Bubble?' area, representing the mid-speculation zone, was shown at around $220,071. In a strong upward phase, the 'FOMO intensifying' zone is open up to $281,540, and the 'Sell Zone' up to $365,907. The highest 'Maximum Bubble Zone' was presented at $491,369.

Currently, Bitcoin is trading at approximately $78,200, placing it in the lower-mid range according to the Rainbow Chart. While there is limited upside potential to the 'Buy Zone' of $79,604 in the short term, analysis suggests the possibility of entering the $100,000-$130,000 range if the upward cycle fully materializes.

Technically, Bitcoin is trading above its 50-day simple moving average of $72,359, maintaining a short-term upward trend. However, it remains below the 200-day moving average of $84,046, indicating that a long-term upward trend recovery is still incomplete. The 14-day Relative Strength Index (RSI) is 60.88, which is not an overheated zone but is considered a neutral level with room for further upside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*