Bitcoin Hits Record High, but the Rainbow Chart Hints at Even Wilder Rides Ahead

While bitcoin recently hit a record-breaking $89,983, the widely followed rainbow chart—known for illustrating bitcoins long-term price movements and market sentiment on a logarithmic scale—sits surprisingly low compared to previous bull run peaks.

The Popular Bitcoin Rainbow Chart Teases Six-Figure Future

Bitcoin has been on a wild ride over the past month, with prices suggesting even bigger climbs ahead. Traders and analysts across social media and forums are all abuzz, sharing everything from logarithmic charts and Elliott Wave forecasts to Plan B‘s stock-to-flow (S2F) price model and, of course, the vibrant rainbow chart. This rainbow chart is a popular tool that helps visualize bitcoin’s long-term price trends and market sentiment.

The chart itself is a colorful look at bitcoin‘s historical price swings, plotted on a logarithmic scale. Originally crafted in 2014 by a Reddit user named Azop, it’s since been updated several times. Currently, blockchaincenter.net features two versions of the chart, which, at present, show BTC in the green “accumulate” zone. In past peaks—like the bull runs of 2013 and 2017—bitcoin surged into the “maximum bubble territory” range, represented in deep red.

But during the 2021 bitcoin rally, prices didn‘t reach those red extremes, only making it as high as the “FOMO intensifies” level in dark orange. Now, there’s a chance bitcoin may never hit the red zone again. However, if it rises to the orange level, prices could reach six figures, significantly higher than today. If bitcoin climbs into the “Is this a bubble？” light orange zone by mid-February 2025, the price would surpass $200,000 per coin.

Even landing in the yellow “HODL!” zone would put bitcoin above $130,000 in mid-February, according to the rainbow chart. While this rainbow chart is a go-to for bitcoin fans, it‘s worth noting its limitations. First, it’s based on historical data and doesn‘t consider external factors that could affect bitcoin’s price. Additionally, the chart has been modified over time, making it seem more accurate in hindsight than it might have been in real-time.

As bitcoin rides its latest wave, tools like the rainbow chart capture both the excitement and unpredictability of its journey. While historical patterns offer insights, future price movements remain an open question. For traders and enthusiasts alike, the thrill lies in the unknown—whether bitcoin reaches six figures or higher, each milestone keeps the adventure alive.