Is Bitcoin Still Undervalued?…Rainbow Chart Points to Next Target

▲ Bitcoin (BTC)/ChatGPT generated image ©

The Bitcoin Rainbow Chart is once again drawing market attention. With analyses suggesting that Bitcoin is currently in a 'buy zone', market expectations that "the full-fledged bull market has not yet ended" are reviving.

According to Finbold, a cryptocurrency specialized media outlet, on May 24 (local time), the Bitcoin (BTC) Rainbow Chart suggested that the price of Bitcoin could move between approximately $59,000 and up to $491,000 by June 1, 2026. Bitcoin is currently trading at around $77,000 and is located in the 'buy zone' on the chart. This can be interpreted to mean that it may still be undervalued compared to long-term historical trends.

According to the Rainbow Chart, the nearest target price is approximately $79,670. However, if the market bull run accelerates, Bitcoin could potentially enter higher zones, surpassing $100,000. The chart indicates a 'accumulation zone' at approximately $102,713 and a 'still undervalued zone' at approximately $132,461. These areas are considered price levels with room for further upside even if market optimism expands.

Should the bull market fully materialize, the Rainbow Chart offers even more aggressive projections. The 'hold zone' is analyzed at approximately $173,173, and the 'bubble warning zone' at around $220,242. Furthermore, the 'FOMO zone' is suggested at approximately $281,755, and the 'sell warning zone' at approximately $366,181. The highest stage, the 'extreme bubble zone', reaches approximately $491,731, described as an area historically coinciding with periods of market overheating and excessive speculative sentiment.

Conversely, the lowest zone, the 'fire sale level zone', is analyzed at approximately $59,186. This price range was formed in the past during deep bear market phases when Bitcoin significantly deviated below its long-term growth trend. Finbold assesses that the current market is still far from an extreme overheating stage and that there is still potential for further upside in the long-term cycle.

However, the outlet emphasized that the Rainbow Chart is not an accurate price prediction model. It explained that the model is closer to a long-term reference indicator that visualizes past market cycles and investor sentiment into color-coded zones. It added that with new variables such as expanding institutional adoption, Bitcoin spot ETFs, and macroeconomic changes altering the market structure, it cannot be concluded that the same patterns from the past will repeat.

*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.*