Bitcoin Rainbow chart suggests this BTC price is in for more price increases. This comes after several months of downtrends. A look at the chart suggests a massive decrease in its value with indicators suggesting more downtrends ahead.
For example, in May, the Moving Average Convergence Divergence displayed a bearish cross after a 2-week-long downtrend. In response to the massive decrease in value, the Relative Strength Index also displayed a bearish trajectory. It dropped as low as 51 during the peak of this condition.
At the time of writing, market conditions have greatly improved. The current trajectory is the result of a spike in positive fundamentals.
One such is the institutional interest in offering Bitcoin EFT. While many firms chased this prospect, one of the leading companies is BlackRock. With the dream gradually becoming a reality, more traders are optimistic about the effect it may have on the main asset’s price.
As a result, the value of the apex coin is on the rise. Over the last seven days, it flipped several resistances and attained levels in the last 9 weeks. One critical mark it broke was $28k. It broke through the mark with ease after several failed attempts over the last four weeks.
Currently exchanging at $30k, there are huge concerns about when the uptrend will stop, how high bitcoin may go, and how it may affect next year’s price performance. The bitcoin rainbow chart offers an insight into these questions.
Bitcoin Rainbow Chart Suggests an Impending Rally
The rainbow chart is one of the long-term indicators traders look at for insight into the next price action. The chart is displaying additional information on how BTC may perform next year.
Made up of nine different colors, each has a different meaning. Currently above the third hue section, traders are optimistic that the most recent uptrend may continue and the asset under consideration may attain new heights.
One of the predictions is that the apex coin may end 2023 between the yellow and the brown section. Ending within the yellow zone will guarantee a close of between $62k and $83k. The latter may see bitcoin climb above $85k and attempt $107k. In both scenarios, BTC is set to attain a new all-time high.
With regards to 2024, the bitcoin rainbow chart suggests that the coin may crush $100k before the year ends. If prices attain maximum heights, the apex coin may attempt $200k and flip $300k. With such huge prospect for the asset, let’s look at how prices may react over the next few days.
A Bullish Interception is Underway
It is worth noting that prices were responding favorably a few days. Currently down by a few percent, BTC is seeing a small correction from the massive increases it enjoyed over the last few days. Nonetheless, this did not affect the trajectory of the Moving Average Convergence Divergence on the weekly chart.
The indicator showed that bitcoin had a bearish divergence a few weeks ago. After this action, the next price action were bearish. The apex coin is seeing a massive improvement in price. Due to this, the 12-week EMA is in contact with its counterpart. With an impending bullish divergence, the asset under consideration may see more price increases in the coming week.
