Recently, crypto assets investors have been increasingly following the Rainbow Chart, a powerful market sentiment indicator. The Rainbow Chart visually displays whether Bitcoin and Ethereum are in an undervalued, fair, or overvalued state through different colored bands.

Currently, Bitcoin is in the yellow zone of the rainbow chart, indicating that it is a suitable time to continue holding. Looking back at past bull markets, Bitcoin's peak has previously reached the second red band. Considering the law of diminishing marginal returns, the peak of this bull market is likely to fall within the third orange band. It is expected that in mid to late October, the price of Bitcoin may fluctuate between $150,000 and $230,000. It is worth noting that the current high point of $124,500 may not be the end of this upward trend, and the likelihood of a double top pattern appearing is relatively low. A conservative estimate suggests that around $150,000 could be a reasonable target price.

The performance of Ethereum is also worth following. It is in the yellow band area, but its position is closer to the top than Bitcoin, which is often seen as a signal that the altcoin season is approaching. Based on past trends, Ethereum's peak is likely to appear in the third color band. In mid to late October, its price range may approach $7000. From a cautious perspective, this level may be the peak of this round of increases. However, considering the difficulty in accurately grasping the peak, when the price exceeds $6000, it may be an ideal time to take profits.

Although the rainbow chart provides investors with an intuitive reference for market sentiment, we must understand that it is primarily based on historical data. Therefore, these signals should be viewed more as references rather than the sole basis for making investment decisions. In the fast-changing crypto assets market, comprehensive analysis of various indicators and market factors is necessary to make more informed investment decisions.