Bitcoin (BTC) just recently broke through its previous all-time high, which has created a lot of excitement and speculation across the crypto community. But as the price climbs into new all-time highs, the big question is: are we in a new leg up, or are we nearing the top of this cycle? In a more lucid picture of their market cycle, analysts see Bitcoin turning to four all-important indicators: the Bitcoin Rainbow Chart, the Relative Strength Index (RSI), the 200-Week Moving Average Heatmap, and the 2-Year Moving Average (MA) Multiplier. Each of these tools offers a different take on Bitcoin’s historic behavior and could well shed light on how much life is left in this rally before it runs out of gas. Rainbow Chart: Forecasting Long-Term Potential The popular long-term valuation model known as the Bitcoin Rainbow Chart uses a logarithmic growth curve to project the potential price ranges of Bitcoin over time. It is not intended as a short-term trading tool but rather provides a broad overview of the trajectory of Bitcoin across various market cycles. The latest update—titled the Rainbow2023 Chart—recommends that there is still substantial upside potential. It suggests that Bitcoin is in a “Hold” or “Accumulate” zone, with present prices not really extended in any sense when viewed through a macro lens. The Rainbow chart goes on to point out that the next cycle peak is potentially well above $200,000. This model suggests that even if BTC has hit new heights, we’re not quite in the euphoric space that usually signifies the last leg of a bull market. Whether you hold for the long term or are a recent addition to the space, upward price momentum could still deliver some tasty gains. RSI Signals Short-Term Overbought Conditions—but No Immediate Peak The price of BTC hit a new all-time high last week. Will it continue to rise or fall from the top? Let's use 4 indicators to see if $BTC is at its peak now. Rainbow Chart https://t.co/c2snAqQ7jl The Rainbow Chart is a long-term valuation tool that uses a logarithmic growth… pic.twitter.com/7rdzXEblcm — Lookonchain (@lookonchain) May 26, 2025 The RSI is a momentum oscillator that measures how fast and how much price changes occur. It ranges from 0 to 100. Readings above 70 typically indicate an overbought market, while those below 30 suggest an oversold one. Currently, the RSI for BTC is at 71.35, which is situated just over the line that demarcates an overbought condition. Thus, we should maybe exercise a little caution here in the short term. Elevated RSI values like what we’re seeing now have often been precursors to local pullbacks or sideways-ish consolidation. However, it is worth mentioning, and a lot of commentators have mentioned, that BTC’s RSI has been above 70 for a nice stretch during prior bull runs. In short, although the RSI indicates a possibly overheated short-term market, it doesn’t definitely signal that the overall cycle top is in. It still could be the case that the market has some further price expansion potential before any kind of major correction kicks in. Heatmap and 2-Year MA Multiplier Show More Room for Growth We now focus on two enduring technical models that have usually been dependable for pinpointing moments of extreme market behavior. These are the 200-Week Moving Average Heatmap and the 2-Year MA Multiplier. The 200-Week Moving Average Heatmap employs a color-coded system that signifies when BTC is historically undervalued (blue/green) or overvalued (orange/red). Right now, Bitcoin’s price is represented in the blue zone—traditionally a “buy” zone. This could mean that, despite the all-time high, the broader market might be in the early stages of a bull cycle, with substantial upside potential. In the same way, the 2-Year MA Multiplier compares the present price with its 2-year moving average and a multiple of that average (often x5). At the moment, BTC trades between the green and red lines—much nearer the fair-value line than the line designating a euphoric state. Current market conditions don’t seem to resemble either an overheated situation or a recent peak. Conclusion: Still Climbing, Not Peaking—Yet The new all-time high for Bitcoin has, of course, raised concerns about whether the rally is sustainable or more likely to be ending soon. But a thorough examination of four key indicators gives a very different impression, one that suggests there is still a goodly amount of room for the market to grow in this cycle. The Rainbow Chart suggests that we could peak above $200K; the Heatmap and 2-Year MA Multiplier confirm that we are definitely below historical top prices. As with anything else in life, there must be some kind of upper limit. These models suggest a potential one for the next bull market. When all is said and done, Bitcoin looks to be enjoying a strong spell with lots of room to run and pretty good odds of appreciation ahead. As is always the case, investors ought to keep a close watch on price action, sentiment, and the macroeconomic backdrop—but for now, the data suggest that the bull market has lots of energy left. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
