According to the Bitcoin Rainbow Chart, the current price level of BTC was within a so-called “accumulated” zone.

The Bitcoin Rainbow Chart visually represents the valuation of Bitcoin based on historical data. In particular, it is a logarithmic scale that includes colored bands that show the buy (blue, green) and sell (orange, yellow) zones.

In the last three halving cycles, BTC was massively undervalued immediately after the halving. Although the current BTC price level is slightly higher on the scale than the last few cycles, it is within the “accumulation” zone.

Therefore, BTC is still undervalued and not overheated, according to the Bitcoin Rainbow Chart.

Furthermore, the Stock-to-Flow (S/F) model indicates further upside potential for the price of Bitcoin. The model evaluates future BTC prices by dividing its circulating supply by the annual number of coins mined.

The model has been able to predict BTC prices with a fair variance in the past. It predicts that BTC will cross $100,000 in the third quarter of 2024 and reach over $450,000 by the end of 2025.