Bitcoin Rainbow Chart Encourages Investors as October Halving Event Nears

Thirteen months ago, Bitcoin [BTC] was trading at $25.7k. Last September, the market was in despair and the halving event was at least seven months away.

Bitcoin [BTC] price action has been closely monitored throughout 2024, especially in the latter half of the year. A glance at the Bitcoin Rainbow Chart reveals a potential scenario for October.

Chart analysis reveals that BTC could be gearing up for a strong rally, possibly starting later this month. Here’s how the chart and on-chain metrics hint at this possibility.

Bitcoin Rainbow Chart: A closer look at the long-term price trends of BTC shows that the price is still within a good buy zone, according to the chart. It describes the current market conditions as “a fire sale.”

Comparing this cycle’s performance with the previous cycle, the latter half of October could be when BTC starts rallying strongly. This rally could be the bull run that follows a halving event.

On-chain metrics also provide some insight into the price trend. The Net Unrealized Profit/Loss metric was at 0.47, indicating that the market cap was still higher than the realized cap.

This means that a good portion of holders may still be in profit, even though the price has been trending down over the past six months. The NUPL fell alongside the price, showing that the intention to sell from holders in profit is likely decreasing.

This suggests that there is room for price appreciation in the coming months. A NUPL reading above 0.7 usually marks the cycle top.

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