Bitcoin (BTC) continues its journey through a fluctuating market, recent indicators suggest it may be time for investors to consider buying. The Bitcoin Rainbow Chart, a visual tool that evaluates BTC’s value based on historical prices, has recently flashed a ‘BUY’ signal. This development, combined with other key metrics, has market experts optimistic about Bitcoin’s performance in the upcoming months.

Bitcoin’s Current Position

Since peaking in March 2024, Bitcoin has been stuck in a trading range between $60,000 and $70,000. While this plateau may seem lackluster, many analysts argue that it presents a prime buying opportunity, particularly as Q4 typically ushers in more bullish sentiment in the crypto market.

The Rainbow Chart, which divides Bitcoin’s price history into various colored bands, shows that BTC is still within the ‘accumulate’ and ‘buy’ zones. Lower bands suggest that Bitcoin is undervalued, making this an ideal moment for potential investors to consider entering the market.


What Does the Rainbow Chart Indicate?

For those unfamiliar with the Rainbow Chart, it provides a visually intuitive way to gauge Bitcoin’s valuation. The chart uses colors to represent different levels of market temperature. Lower bands indicate an undervalued asset, while higher bands signal that the market may be overheated and due for a correction.

As of now, Bitcoin’s value is firmly situated within the ‘buy’ zone, indicating that the asset is still seen as undervalued. This is especially important as we approach a season historically known for price increases.

Additional Indicators Support Buying

Beyond the Rainbow Chart, other valuation metrics reinforce the idea that Bitcoin may be a bargain right now. The Pi Cycle Top indicator, which has accurately predicted Bitcoin’s cycle tops in the past, shows a significant gap between the 111-day moving average (MA) and the 350-day moving average (350 DMAx2). This gap suggests that Bitcoin has not yet reached its cycle peak, meaning a bull run could still be on the horizon.


Historically, when the 111-day MA crosses above the 350 DMAx2, it signals that Bitcoin is nearing its peak. However, the current wide gap implies that there is still room for growth, giving investors a potential advantage.

Another valuable metric is the Puell Multiple, which analyzes Bitcoin’s price relative to miner profitability. Currently, the Puell Multiple sits at 0.73, indicating that Bitcoin is significantly undervalued. A reading in the green zone signals that the asset may be a good buy, reinforcing the argument that now could be the time to invest.

Expert Predictions for Bitcoin’s Future

Market predictions for Bitcoin’s price over the next few years are largely optimistic. Standard Chartered Bank has set a target of $250,000 for Bitcoin by 2025, a figure that has garnered attention and excitement among investors.

CK Zheng, founder of the crypto-focused hedge fund ZX Squared Capital, believes Bitcoin could reach new all-time highs in Q4 2024, regardless of the outcome of the U.S. elections. Zheng cites growing national debts and fiscal deficits as driving factors that could make Bitcoin increasingly attractive to investors, especially as the Federal Reserve embarks on a rate-cutting cycle.

Should You Invest Now?

With the current indicators suggesting that Bitcoin is undervalued and predictions pointing towards significant price increases in the near future, investors are faced with a critical decision: should they buy now or wait?

The consensus among experts is that the upcoming months could yield substantial returns for those who invest. If the projections hold true and Bitcoin breaks out of its current price range, those who buy in now may find themselves in a favorable position.

In conclusion, the Bitcoin Rainbow Chart and other valuation metrics indicate that BTC could be an appealing buy at this moment. With a bullish Q4 on the horizon and optimistic forecasts for 2025, potential investors might find this to be an opportune time to enter the market. As always, it is essential for investors to conduct their own research and consider their financial situations before making any investment decisions.