Skip to content

Bitcoin Rainbow chart predicts BTC price for Jan 1, 2025

Bitcoin Rainbow chart predicts BTC price for Jan 1, 2025

Bitcoin’s (BTC) incredible rally hit a rough patch after November 22, as investors appear to have lost their patience waiting for the cryptocurrency to fully close the final $2,000 gap to $100,000.

Despite this decline to BTC price today of $93,721, the sentiment remains bullish.Once put in context, the correction appears minuscule as the coin remains 36.70% green in the 30-day chart.

BTC 30-day price chart. Source: Finbold

Still, the question of what will happen to Bitcoin through the remainder of 2024 and by the first day of 2025 remains open, and the Bitcoin Rainbow chart may offer some insights into things to come.

Bitcoin Rainbow chart analysis

The Bitcoin Rainbow chart is a tool that utilizes a logarithmic growth curve and describes investor sentiment at various price levels. 

The chart is divided into nine zones with rather descriptive names: ‘Maximum Bubble Territory,’ ‘Sell. Seriously, SELL!,’ ‘FOMO intensifies,’ ‘Is this a bubble?,’ ‘HODL!,’ ‘Still cheap,’ ‘Accumulate,’ ‘BUY!,’ and ‘Basically a Fire Sale.’

At press time on Wednesday, November 27, Bitcoin was in the yellow ‘HODL!’ zone, indicating a move in either direction is possible. This makes buying somewhat unattractive but signals the danger of a major sell-off is low.

Bitcoin Rainbow Chart showing zone distribution on November 27, 2024. Source: Blockchain Center

According to the chart, BTC will remain in this territory unless it moves below $83,198.37 – in which case it’d again become cheap – or above $109,707.14 – a level that inaugurates a serious possibility of an unstable bubble.

Critical Bitcoin price levels to watch on January 1, 2025

The Bitcoin Rainbow chart simultaneously offers some insights into the price points investors should be wary of come January 1, 2025. To begin with, the range of the ‘HODL!’ zone will move slightly by the New Year, and BTC will remain in the zone as long as it trades between $85,805.72 and $113,080.8.

Should the world’s premier cryptocurrency fall below the lower bound of the range, investors who have yet to gain significant exposure to Bitcoin – or who desire to increase their exposure  – would gain a lucrative opportunity. 

The coin is also set to become increasingly interesting to buy – though with a progressively longer likely time until the next rally – at $66,021.85, $50,815.08, and $37,452.43. A collapse below $28,494.4 would signal a profound change in the cryptocurrency market.

Bitcoin Rainbow Chart zone distribution on January 1, 2025. Source: Blockchain Center

On the other end, crypto traders – and particularly those investors who purchased before the Donald Trump re-election-driven rally – might want to consider selling at least some of their Bitcoin should it cross above $113,080.8 as that is the point at which many will begin suspecting a bubble.


Additionally, the Rainbow Chart indicates that holding after a rally above $244,673.38 would be unwise. However, a surge beyond $330,784.01 would, again, signal a profound change in the market and could draw some of the most optimistic forecasts – such as Robert Kiyosaki’s $500,000 price target for 2025 – closer to the realm of plausible.

Finally, it is worth noting that Finbold used the ‘new’ version of the chart, which provides ranges for each zone, while the ‘old’ one offered specific price points to illustrate each individual section and calculated the levels differently.

For example, the previous version marks $77,594.59 as the optimal price to buy on January 1, 2025, and estimates the danger of a bubble would become real only above $275,000.

Featured image via Shutterstock

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.