Bitcoin’s price trajectory continues to captivate investors, traders, and analysts worldwide—especially as it approaches a pivotal date in 2025. The Bitcoin Rainbow Chart, a widely followed long-term valuation model, has recently projected a compelling range for BTC’s price on June 1, 2025, offering insight into potential market sentiment and investor behavior.
While Bitcoin briefly soared past $111,000 earlier this week—setting a new all-time high—it has since pulled back, trading around **$107,498** at press time. This represents a 1.2% dip over the past 24 hours but a nearly equivalent gain over the previous week, indicating strong underlying momentum despite short-term volatility.
👉 Discover how market cycles shape Bitcoin’s next big move.
Understanding the Bitcoin Rainbow Chart
The Bitcoin Rainbow Chart is a logarithmic price chart that maps BTC’s historical price movements across color-coded zones, each reflecting a different level of market sentiment—from extreme fear to euphoric greed. Originally developed to visualize long-term trends, the chart uses a best-fit logarithmic growth curve to suggest fair value ranges over time.
These nine distinct bands stretch from “Bitcoin is dead” (deep red) at the bottom to “Maximum Bubble Territory” (vivid hot pink) at the peak. Unlike technical indicators that react to recent price action, the Rainbow Chart offers a forward-looking perspective based on historical cycles and compounded growth patterns.
It doesn’t predict exact prices but rather provides a framework for understanding whether Bitcoin is undervalued, fairly priced, or potentially overbought.
Current Market Position: Approaching Overbought Levels
As of now, Bitcoin sits within the “HODL!” zone of the Rainbow Chart—indicating strong bullish sentiment with growing caution against overheating. With the 14-day Relative Strength Index (RSI) at 63, BTC is nearing overbought territory (typically defined as RSI > 70), suggesting that upward momentum may begin to slow unless supported by sustained demand.
Despite the pullback from $111,000, key moving averages remain supportive:
- The 50-day Simple Moving Average (SMA) sits at $94,730
- The 200-day SMA rests at $86,569
Both are well below current prices, reinforcing the longer-term bullish trend. Institutional inflows have played a significant role in driving this rally, particularly following the approval of spot Bitcoin ETFs and increased adoption by corporate treasuries.
Bitcoin Price Prediction for June 1, 2025: What the Rainbow Chart Says
According to the Rainbow Chart’s projection model, Bitcoin could trade anywhere between $32,787 and $372,813 on June 1, 2025. Each price band corresponds to a specific psychological and emotional response from market participants.
Let’s break down what these levels mean:
🟤 Below $43,000 – “Basically a Fire Sale”
If Bitcoin trades below $43,000 by June 2025, it would signal a deep bear market—possibly triggered by macroeconomic shocks or regulatory crackdowns. Historically, such zones represent ideal accumulation opportunities for long-term investors.
🟠 $43,000 – $58,000 – “BUY!”
This range marks one of the most aggressive accumulation phases. Investors who enter here typically benefit from substantial upside when bull markets resume.
🟡 $58,000 – $75,000 – “Accumulate”
A more cautious buy zone, suggesting early signs of recovery. While not as deeply discounted as lower bands, this range still offers favorable risk-reward for strategic entry points.
🟢 $75,000 – $97,800 – “Still cheap”
At this level, Bitcoin is considered reasonably valued relative to its long-term growth curve. Many long-term holders view this as a safe zone to add exposure without chasing extreme highs.
🔵 $97,800 – $128,600 – “HODL!”
This is where we stand today—and likely where Bitcoin will reside on June 1, 2025, according to current trends. The message here is clear: avoid panic selling. Profits may be tempting, but exiting too early could mean missing further gains.
👉 Learn how to navigate emotional trading decisions during volatile cycles.
🔵🟣 $128,600 – $164,400 – “Is this a bubble?”
As prices climb into this range, skepticism grows. Media hype increases, retail FOMO intensifies, and caution becomes paramount. While not yet a sell signal, this band demands careful portfolio evaluation.
🟣 $164,400 – $211,400 – “FOMO Onset”
Fear of missing out reaches fever pitch. New investors flood in, often at peak optimism. This phase historically precedes major corrections.
🟣🔴 $211,400 – $276,300 – “Sell. Seriously, SELL!”
The warning label speaks for itself. At these levels, valuations become stretched beyond sustainable fundamentals. Traders are advised to take profits and reduce exposure.
🔴 $276,300 – $372,813 – “Maximum Bubble Territory”
The final zone represents full-blown market euphoria—similar to late 2017 or 2021 peaks. Prices here are unsustainable long-term and often lead to sharp reversals.
Limitations of the Rainbow Chart
While visually intuitive and historically insightful, the Bitcoin Rainbow Chart is not a precision forecasting tool. It relies on logarithmic extrapolation of past performance and does not account for black swan events such as:
- Major regulatory changes
- Global economic recessions
- Technological disruptions (e.g., quantum computing threats)
- Geopolitical instability affecting digital asset policies
Moreover, increasing institutional involvement and ETF flows have altered BTC’s price dynamics compared to earlier cycles. As a result, deviations from the historical curve are expected—and even likely.
That said, the chart remains a valuable sentiment gauge and educational resource for understanding cyclical behavior in crypto markets.
Frequently Asked Questions (FAQ)
Q: Is the Bitcoin Rainbow Chart accurate?
A: The chart reflects historical trends rather than guaranteed future outcomes. While it has aligned with past bull and bear markets (e.g., 2017 peak near the “bubble” zone), it should be used alongside other analysis tools—not in isolation.
Q: Can Bitcoin really reach $372,813 by June 2025?
A: It's possible under extreme bullish conditions—such as global macroeconomic instability favoring hard assets, accelerated adoption, or halving-driven scarcity. However, such a price implies speculative frenzy rather than steady growth.
Q: What does “HODL” mean in the context of the Rainbow Chart?
A: “HODL” is a crypto slang term meaning hold onto your coins despite volatility. In the chart’s “HODL!” zone ($97K–$128K), the suggestion is to resist selling pressure and maintain long-term conviction.
Q: Should I sell if Bitcoin enters the “bubble” zone?
A: Not necessarily—but it’s wise to reassess your investment strategy. Consider taking partial profits or shifting allocations to preserve gains while maintaining some upside exposure.
Q: How often is the Rainbow Chart updated?
A: The underlying model evolves daily as new price data comes in. However, its long-term nature means major shifts occur gradually over months or years.
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Final Thoughts: Using the Rainbow Chart Wisely
The Bitcoin Rainbow Chart serves best as a long-term compass, not a short-term GPS. Its strength lies in contextualizing price action within broader market psychology and historical patterns.
For investors eyeing June 1, 2025, the most probable scenario places Bitcoin firmly in the “HODL!” zone, with potential spillover into speculative bands if momentum sustains. Whether BTC reaches the upper echelons of the chart depends on macro drivers beyond pure technicals—including adoption rates, monetary policy shifts, and global risk appetite.
Ultimately, combining tools like the Rainbow Chart with fundamental research and risk management strategies offers the strongest path forward in navigating Bitcoin’s volatile yet transformative journey.
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