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Bitcoin Rainbow Chart hints at $500K peak this cycle – Can it happen?
The Bitcoin rainbow chart has reignited hopes of a $500K price peak in the current cycle. According to recent developments, institutional adoption and ETF inflows have fueled Bitcoin’s rise towards a potential supercycle. Favorable macro trends and network growth are aligning to support Bitcoin’s extended trajectory.
Bitcoin’s past cycles demonstrate clear patterns of parabolic rallies breaching the red “Maximum Bubble Territory,” as seen in 2013 and 2017. However, the 2021 cycle diverged, stalling in the “FOMO intensifies” phase due to macroeconomic headwinds and reduced speculative frenzy.
In contrast, this cycle’s measured momentum reflects deeper liquidity and maturing market infrastructure. Growing institutional inflows – fueled by spot BTC ETFs and sovereign wealth interest – could push Bitcoin into the “extreme phase” more sustainably. This deviation highlights Bitcoin’s evolving market dynamics, where institutional participation and regulatory scrutiny dampened extreme volatility.
If Bitcoin revisits the rainbow chart’s red zone, it might signal a more extended, stable climb, aligning with a supercycle thesis rather than a speculative blow-off top.
Source: ambcrypto.com
