The Bitcoin rainbow chart is a beautiful indicator.

It indicates that the previous cycle has not yet entered the kind of excitement we typically see in Bitcoin cycles.

Due to this cycle, with the emergence of PTSD, expectations for this cycle have significantly decreased.

According to the rainbow chart indicator, anything:

- Below $110,000 is considered 'accumulation'

- Between $110,000 and $150,000 is considered 'still cheap'

To enter the red zone, valuations need to rise to:

- Above $250,000

- The first red zone starts at above $375,000 (the same phase as the 2021 cycle).

Over time, valuations will rise higher. For example, the current red zone of $375,000 will increase to $470,000 by August 2025.

Conclusion: People simply cannot anticipate how high and extreme this cycle will be. I believe it will be roughly comparable to the 2014-2017 cycle.