Forecasters eye pivotal date as popular metric signals potential Bitcoin valuation by summer's onset

According to the Bitcoin Rainbow Chart, a predictive model that gauges market sentiment through a series of colored bands, the cryptocurrency's price could potentially fluctuate between $59,136 and $491,369 by the end of May 2026. This valuation range is contingent upon the prevailing market sentiment and the strength of the current cycle. The chart, which utilizes a logarithmic scale to model Bitcoin's value, categorizes the cryptocurrency's potential price points into distinct tiers, each reflecting varying degrees of market sentiment.

By May 31, 2026, the chart suggests that the lower bound of Bitcoin's valuation spectrum, denoted as "Basically a Fire Sale," could be around $59,136.27, a level often associated with pronounced undervaluation and intense market fear. Conversely, the "BUY!" zone is anticipated to be approximately $79,604.13, while the "Accumulate" tier is projected to be $102,629.18. Further up the scale, the "Still cheap" range and "HODL!" level are forecasted at $132,354.81 and $173,035.96, respectively. The midpoint of the chart, characterized as the "Is this a bubble?" region, is estimated to be $220,071.10. More aggressive bullish projections place the "FOMO intensifies" and "Sell. Seriously, SELL!" zones at $281,540.58 and $365,907.48, respectively. The uppermost tier, designated as "Maximum Bubble Territory," is predicted to be $491,369.35.

As of May 2, Bitcoin's price of approximately $78,200 positions it near the lower-middle section of the Rainbow Chart's valuation bands. If the cryptocurrency were to gravitate toward the "BUY!" zone by May 31, 2026, this would imply relatively modest growth over the forthcoming year. However, if Bitcoin were to ascend into the "Accumulate" or "Still cheap" zones, its price could potentially range between $102,000 and $132,000 by the specified date. Under a more robust bullish scenario, the model suggests that Bitcoin could surpass $173,000 and enter the "HODL!" region, while an extremely speculative market environment could propel prices beyond $220,000, approaching the upper "FOMO intensifies" or "Sell" territories.

At the time of writing, Bitcoin's price had appreciated by approximately 1.3% over the preceding 24 hours, reaching $78,140. On a weekly basis, the cryptocurrency had gained roughly 0.77%. The fact that Bitcoin remains above its 50-day simple moving average of $72,359 indicates that short-term momentum continues to support the broader uptrend. Nevertheless, the cryptocurrency is still trading below its 200-day simple moving average of $84,046, suggesting that it has yet to fully reclaim its longer-term bullish structure. The 14-day Relative Strength Index (RSI) reading of 60.88 signifies neutral-to-bullish momentum, implying that buying pressure remains intact without Bitcoin entering overbought territory, thus leaving room for potential further upside if momentum strengthens.