Bitcoin Rainbow Chart: The Upcoming 4 Months for Bitcoin Might Transform Everything: Are We Seeing History Repeat Itself?
The Bitcoin rainbow chart illustrates that 
BTC ▼-0.12% is thriving well above the $100K mark, even appearing affordable.
However, an analysis from 99Bitcoin reveals that USDT’s circulating supply is hitting a peak, and increasing leveraged shorts indicate we might experience fluctuations in either direction.
At the same time, assessments of widely accepted predictive frameworks, like economist Raoul Pal’s M2-Bitcoin correlation, lead us to ponder, is this cycle truly unique? Has alt-season been called off?
Bitcoin Rainbow Chart: The Clash of Bulls and Bears
Bitcoin has bounced back from a several-month low of $98k, erasing pessimistic bets based on geopolitical anxieties. Currently hovering around $108,952, Bitcoin is steadying within the $106k–$108k band as bulls look to revisit the key psychological milestone of $110k.
It’s worth mentioning: noted crypto holder James Wynn maintains a 40x short position valued at $1.49 million, which is contingent upon $108,630 serving as a critical liquidation threshold. Wynn and other downtrend traders may encounter a short squeeze if Bitcoin surges past this area.
Such movements might propel a new BTC ATH and ignite an alt-season later this summer.
Altseason loading… pic.twitter.com/sYgCmHNEv7
— Julien Bittel, CFA (@BittelJulien) June 28, 2025
Additionally, Tether’s circulating supply surged to a database $158 billion late last week. Coupled with BlackRock’s consistent $1.15B weekly Bitcoin acquisitions, this clearly indicates that institutions are strategically positioning themselves.
Examining the M2-Bitcoin Relationship
The recent surge of BTC past the six-figure mark has reignited an enduring discussion: Can any of this truly be anticipated? Raoul Pal argues affirmatively, citing M2 money supply patterns as a predictive tool for BTC. Nevertheless, 21st Capital Co-Founder Sina dismisses this notion.
Epic collection of Raul Pal’s disastrous recommendations
People actually pay to listen to him
— Sina
In a critique published on June 24, he stated that the predictive capability of the model disintegrates when faced with actual circumstances. The more modifications made, the less effective it becomes. “It’s not about forecasting; it’s about imposing a narrative onto the chart,” he remarked.
Despite this, the next four months will reveal whether we are in a “traditional cycle” where BTC soars due to monetary expansion, interest rate cuts, and geopolitical calming, or if Sina’s perspective holds true.
What’s Next for Bitcoin?
Faith in established BTC models is waning. Analysts like Sina are advocating a return to basics: market fluidity trends, crypto wallet engagement, and real-time platform indicators.
Prepare yourselves, everyone; the upcoming weeks may determine whether Bitcoin breaks free from its orbit or is pulled back into turbulence.
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Key Takeaways
- Critiques of popular predictive models like economist Raoul Pal’s M2-Bitcoin correlation are becoming widespread
- All eyes are on Powell next month as inflation persists and labor metrics soften.
The post Bitcoin Rainbow Chart: The Next 4 Months For BTC Could Change Everything: Is History Repeating? appeared first on 99Bitcoins.
