# Current Phase of Bitcoin on the Rainbow Chart

## Bitcoin Situation in May 2025

According to the most recent available price data, Bitcoin is currently trading around $107,000-$109,000, placing it in a specific position within the Rainbow Chart.

### 📊 Location in the Color Bands

Currently, Bitcoin is mainly in the **yellow-orange zone** of the Rainbow Chart, indicating:

- A valuation that is **above the historical average**

- Far from undervaluation zones (blue/green)

- Has not yet reached extreme overvaluation zones (deep red)

### 🔄 Market Cycle Interpretation

This position suggests that Bitcoin is in an **intermediate phase of the bullish cycle**:

- It has surpassed the initial accumulation phase

- Shows significant bullish momentum with new all-time highs

- Has not yet entered the euphoria or bubble phase characteristic of cycle peaks

### 📈 Historical Context

Comparing with previous cycles:

- Similar to the mid-2017 situation, before the parabolic rally

- Also comparable to early 2021, before reaching its previous peak

## Complementary Signals

Other indicators mentioned previously reinforce this interpretation:

- **RSI at moderate levels** (71.35): Shows some overbought conditions but not at extremes

- **Trading volumes**: Below historical peaks, suggesting that there is still no massive retail participation

- **Holder behavior**: Accumulation by long-term investors

## Implications for Investors on BingX

This phase of the market according to the Rainbow Chart suggests:

- Potential for continuation of the bullish movement

- Increased volatility expected in both directions

- Possible rotation between Bitcoin and altcoins in the coming weeks

It is important to remember that, although historically Bitcoin has followed similar patterns, each cycle has its own characteristics.