Bitcoin Price Analysis 2024: Rainbow Chart Indicates Positive Signs

Bitcoin Price Analysis

The cryptocurrency market has witnessed a remarkable turnaround in recent weeks, following a period of fear and uncertainty triggered by regulatory actions against major platforms like Binance and Coinbase. Despite these challenges, Bitcoin, the world’s largest cryptocurrency, has shown resilience and has surged over 12% since the start of June. This article provides an analysis of Bitcoin’s price movement using the BlockchainCenter’s rainbow chart, explores the current market sentiment, and discusses the potential for institutional investment in the coming months.

Bitcoin Crypto Enters ‘Accumulate’ Phase on Rainbow Chart

According to the rainbow price chart by BlockchainCenter, Bitcoin has recently entered the ‘Accumulate’ phase. This stage, denoted by the price range of $29,895 to $39,198 as of June 23, signifies a potential accumulation opportunity for investors. This stage becomes evident as the cryptocurrency’s historical movements are analyzed across various moving averages (M.A.).

Factors Influencing the Accumulate Phase:

Bitcoin’s entry into the ‘Accumulate’ phase is influenced by market sentiment, institutional interest, and macroeconomic trends. Regulatory actions and the SEC’s classification of cryptocurrencies as commodities initially created uncertainty. However, Blackrock’s filing for a Bitcoin Spot ETF has boosted market confidence and contributed to the current accumulation phase.

Market Reversal Driven by Blackrock’s Crypto Spot ETF Filing

The market witnessed a notable reversal after a bearish week. Moreover, this was largely influenced by the Securities and Exchange Commission’s scrutiny of certain crypto exchanges and the classification of specific cryptocurrencies. Notably, the news of Blackrock, the world’s largest asset manager, filing for a Bitcoin Spot ETF has significantly impacted market sentiment. Given Blackrock’s substantial influence, experts anticipate a higher likelihood of approval for this ETF application, which could pave the way for increased institutional participation in Bitcoin.

Institutional Confidence and Market Sentiment:

Blackrock’s filing for a Bitcoin Spot ETF has instilled confidence among institutional investors, signaling a growing acceptance of Bitcoin as a legitimate investment asset. Moreover, this renewed optimism, combined with the belief in the SEC’s potential approval, has led to a market reversal and price surge.

Bitcoin Price Analysis and Consolidation

Following a decline to a three-month low, Bitcoin’s price has rebounded, currently trading near a one-week high. The cryptocurrency reached a crucial resistance level close to $30,000, and a breakout is necessary to surpass this point. Traders are closely monitoring the Relative Strength Index (RSI) at 48.93, anticipating the possibility of a breakthrough. Furthermore, a successful breakout could potentially drive Bitcoin’s price to the $31,000 level.

Technical Analysis and Breakout Potential:

Technical indicators, such as the Relative Strength Index (RSI), play a crucial role in predicting Bitcoin’s future price movements. The RSI is currently at 48.93, providing insights into the cryptocurrency’s strength and the potential for a breakout above the $30,000 resistance level. Traders closely analyze these indicators, anticipating a breakout that could drive Bitcoin toward $31,000, generating further strong sentiment.

Is it worth investing in Bitcoin?

Investing in Bitcoin remains a viable option as it continues to maintain its position as the leading cryptocurrency. Moreover, the month of June presents a particularly favorable opportunity for investors to accumulate BTC. Notably, BlackRock’s application for a spot Bitcoin ETF with the SEC is seen positively by experts. Additionally, projecting a potential bull run upon approval. Furthermore, regulatory efforts aimed at establishing a framework for the crypto industry. Therefore, the growing involvement of major corporations in Bitcoin enhances its investment prospects.


Despite recent market volatility, Bitcoin has displayed resilience and upward momentum in its price. The rainbow chart analysis indicates an ‘Accumulate’ phase, signaling potential opportunities for investors. Moreover, the filing of a Bitcoin Spot ETF by Blackrock has instilled confidence among institutional investors. As market participants closely monitor the resistance level at $30,000, a breakthrough could propel Bitcoin toward the $31,000 mark. Therefore, investors must consider the current market dynamics and the growing institutional interest in Bitcoin when evaluating investment opportunities.