Rainbow Chart Predicts $1.36M Bitcoin Price Target for October 31

The Rainbow Chart, a long-term valuation model for Bitcoin, suggests that the cryptocurrency remains below its historical trend valuation as October begins. The chart's October 31 valuation bands sit well above Bitcoin's current price of $84,584.

According to the chart, the highest valuation zone on October 31 is 'Maximum Bubble Territory' at $1.36M, a band historically associated with extreme market euphoria and cycle tops. However, this valuation seems unlikely to be reached in the short term.

The Rainbow Chart's long-term trajectory indicates that Bitcoin is currently trading below its lowest valuation band. This highlights the discrepancy between current market prices and the model's long-term trajectory.

In the short term, Bitcoin's recent rally toward $87,000 stalled after whales reportedly took profits on more than 30,000 BTC. The $87,000 region also coincided with the upper boundary of a trading channel that has capped prices for over two weeks. The immediate downside target is $82,500.