After starting the year trading at its multi-year low of less than $17,000, Bitcoin has shown a great deal of bullish activity in the past couple of months. As of writing, the world’s oldest and largest crypto is changing hands above $29,000, up more than 75% year-to-date (YTD).
Bitcoin has been a subject of fascination and speculation since its inception in 2009. That’s no wonder considering the price of Bitcoin has increased by tens of millions of percent over the years. However, the price increase was anything but linear, as the currency experienced both tremendous gains and significant losses during its journey.
As we look ahead to 2025, the Bitcoin Rainbow Chart can offer valuable insight into Bitcoin’s potential future price trajectory.
The Bitcoin Rainbow Chart suggests now is a good time to accumulate BTC
What is Bitcoin Rainbow Chart?
Taking into account past Bitcoin price movements and halving events – preprogrammed cyclical events that cut miner rewards by 50% roughly every 210,000 blocks – the Rainbow Chart allows holders and investors to gain insight into Bitcoin’s future price movements.
At the time of writing, the chart suggests that Bitcoin is in the “accumulation” band (indicated by the dark green color), meaning that now might be a good time to buy Bitcoin.
The Bitcoin Rainbow Chart prediction for 2025
Looking towards the future after the next Bitcoin halving, the logarithmically generated Rainbow Chart sets the lower bound for the price of Bitcoin for the end of 2025 at $34,628. On the other end of the spectrum, Bitcoin could reach the upper bound at $425,779, which is about 14.6 times higher than its current price.
Taking into consideration all of the different rainbow bands and averaging their values, we can pinpoint that the average price of Bitcoin by the end of 2025 is estimated at $165,275.
A new ATH after the 2024 halving?
Historically speaking, Bitcoin halvings have arguably been one of the most important events in the cryptocurrency industry. Taking place roughly every four years, each halving decreases the amount of new Bitcoin that enters circulation by half.
The next halving, the fourth so far, is expected to occur in early April 2024, reducing the Bitcoin mining rewards from 6.25 BTC to 3.125 BTC. Analysts predict that the next halving cycle, starting with the April 2024 halving, will see the price of Bitcoin reach a new all-time high (ATH).
That corresponds with past price movements, which saw Bitcoin reach a new ATH every cycle. For additional context, the table below shows the lowest and highest price that BTC reached during each cycle.
| Lowest price | Highest price | |
| First halving cycle (November 2012 – July 2016) | $12.4 (December 2012) | $1,170 (November 2013) |
| Second halving cycle (July 2016 – May 2020) | $535 (August 2016) | $19,400 (December 2017) |
| Third halving cycle (May 2020 – April 2024)* | $8,590 (May 2020) | $67,450 (November 2021) |
The fourth halving cycle will start in April 2024
As mentioned earlier, the main technical reason why the price of Bitcoin rallies following each halving event is the reduced amount of BTC that enters the circulation as a part of mining rewards.
This reduces the inflationary pressure and, in turn, increases the value of each BTC. While there is no guarantee that the trend will continue in the future, analysts believe that the trend will persevere into the fourth halving cycle.
For more information about how the next halving could impact the price of Bitcoin, and whether BTC could surpass the $100,000 price tag leading up to the 2024 halving, check out the video below.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
