Bitcoin $490,000 Possible? The Future According to the Rainbow Chart

▲ Bitcoin (BTC) Investment ©Godasol

An extreme forecast has been presented, suggesting that Bitcoin (BTC) could be open to a maximum of $490,000 by the end of May, bringing renewed attention to the price distribution based on market cycles.

On May 2 (local time), according to the cryptocurrency specialized media outlet Finbold, the Bitcoin Rainbow Chart presented a BTC price range from approximately $59,136 to a maximum of $491,369 as of May 31, 2026. This model is a log-based valuation method that analyzes market sentiment by dividing it into color zones, from undervaluation to bubble zones.

Looking at each zone, the 'Fire Sale' area, corresponding to 'extreme undervaluation,' is $59,136, the 'Buy Zone' is $79,604, and the 'Accumulation Zone' is presented as $102,629. Following this, the 'Still Cheap' zone is $132,354, and the 'Hold (HODL)' zone was analyzed as $173,035.

The 'Is this a Bubble?' zone, which is the mid-speculation zone, appeared at around $220,071, and in a strong uptrend, the 'FOMO intensifying' zone is $281,540, and the 'Sell Zone' is open up to $365,907. The topmost 'Maximum Bubble Zone' was presented as $491,369.

Currently, Bitcoin is trading at around $78,200 and is located in the lower-middle zone according to the Rainbow Chart. In the short term, there is limited room for upward movement to the 'Buy Zone' of $79,604, while if the upward cycle fully materializes, there is also the possibility of entering the $100,000 to $130,000 range.

Technically, Bitcoin is trading above its 50-day simple moving average of $72,359, maintaining a short-term upward trend. However, it remains below the 200-day moving average of $84,046, indicating that the recovery of a long-term upward trend is not yet complete. The 14-day Relative Strength Index (RSI) is 60.88, which is not an overbought zone but is considered a neutral level with room for further upside.

*Disclaimer: This article is for investment reference purposes, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*