According to Michaël van de Poppe, the rainbow chart is a reliable indicator of Bitcoin's position in its cycle, suggesting that the current valuation is low. Van de Poppe highlights the Stock-to-Flow (S2F) model by Plan B, which forecasts a Bitcoin price of $500,000. This model provides a fair estimate for Bitcoin's potential valuation in this cycle, impacting trading strategies considerably. Source: Michaël van de Poppe.