Think about how mesmerizing a rainbow is after a rainstorm. Just like those beautiful arcs of color, Bitcoin has its own “rainbow” that helps us understand where it stands in its cycle. This Rainbow Price Chart isn’t just pretty; it’s a playful and insightful tool to see Bitcoin’s price trends and what might come next.
The Bitcoin Rainbow Price Chart
The Rainbow Chart was created in 2014 and uses Bitcoin’s past performance to offer a glimpse into its future. It uses a logarithmic scale, which means it adjusts for the intense ups and downs in Bitcoin’s price, making the overall trends easier to understand.
In a logarithmic chart, the distance between two numbers on the vertical axis increases as the numbers themselves get larger. This helps smooth out the wild swings and makes long-term trends clearer. The rainbow colors give a quick snapshot of market sentiment.
A Rainbow for the Long Haul
This chart is designed for those who are in it for the long term. It’s not about day trading but rather for those with the patience to hold on through the ups and downs.
Let’s break down the colors of the rainbow:
- Maximum Bubble Territory
- Sell. Seriously, SELL!
- FOMO intensifies
- Is this a bubble?
- HODL!
- Still cheap
- Accumulate
- BUY!
- Basically a Fire Sale
- Bitcoin is dead
Right now, the chart is screaming BUY!.
What Does the Rainbow Tell Us?
The vertical stripes on the chart represent Bitcoin halvings. Historically, Bitcoin’s price takes a few months to ramp up after a halving. However, the latest cycle has been a bit different. The price surged quickly before the April halving (bullish sentiment and increased purchasing since the launch of Bitcoin ETFs in January) and hit a new record high just a month afterward. Despite these gains, the price is currently still in the accumulation and buy zone, which is very encouraging for holders and long-term investors.
Looking Ahead to October 2025
Where are we now? Well, we have already experienced some Bitcoin sell-off events that had a negative effect on Bitcoin price, and the months ahead look very positive, with chances for a new all-time high pretty high.
In the previous cycle, the top came 546 days after the halving. If history repeats itself, Bitcoin could reach the top of this cycle in October 2025, with prices between $150,000 and $184,000.
A price of near $150,000 could also be happening much sooner. Pseudonymous Bitcoin price analyst PlanB recently shared with his 1.9+ million followers on X that a price of around $140,000 is possible within 3-5 months.
At the time of writing, Bitcoin is priced at $66,844 per coin, according to CoinMarketCap data.
So, as we look at the rainbow and consider its colors and patterns, we can find some comfort and excitement about where Bitcoin might be headed. If you like this article, and would like to learn more, do not forget to follow us and bookmark HowToBuyBitcoin.org!