EnglishDeutsch한국어 日本語EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçe

Bitcoin Rainbow Chart

The Rainbow Chart is a long-term valuation tool that uses a logarithmic growth curve to forecast the potential future price direction of BTC.

The Rainbow Chart is not investment advice! The Rainbow Chart is meant to be be a fun way of looking at long term price movements, disregarding the daily volatility “noise”.

How Rainbow Chart Works

Originally featured on Blockchain center, the Bitcoin Rainbow Chart overlays color bands on top of the logarithmic regression curve in an attempt to highlight market sentiment at each rainbow color stage as price moves through it. Therefore highlighting potential opportunities to buy or sell.

Buy Bitcoin, own the future

CoinStats makes it simple and safe to buy, sell, and hold Bitcoin. Own Bitcoin in just a few minutes.

Bitcoin Banner
What Is The Bitcoin Rainbow Chart Indicator?

The Rainbow Chart is a long-term valuation tool for Bitcoin. It uses a logarithmic growth curve to forecast the potential future price direction of Bitcoin.It overlays rainbow color bands on top of the logarithmic growth curve channel in an attempt to highlight market sentiment at each rainbow color stage as price moves through it. Therefore highlighting potential opportunities to buy or sell.As with all the charts on this website, the Rainbow chart is not investment advice. It is for educational and entertainment purposes only. There is no guarantee that past performance fit within the rainbow channel will continue to play out in the future.To date, bitcoin price has continued to stay within the rainbow color bands of the logarithmic growth channel.

How to Interpret The Rainbow Chart?

Because Bitcoin is still a relatively young asset class, its price movements are highly volatile. Although on a macro timeline Bitcoin is being adopted, which we can see in the general upwards price movement, it does experience market cycles. During these market cycles, the price of Bitcoin can increase parabolically and also drop very quickly. It also has very high daily volatility which investors need to be aware of.The BTC rainbow chart highlights where BTC price is in those cycles and provides a viewpoint on investor strategy. As mentioned earlier in this article, this chart and its legend labels are for entertainment purposes and do not constitute investment advice.The warmer upper colors of the rainbow chart show when the market is likely overheated. Such periods have historically proven to be good times for the strategic investor to begin taking some profits.

我们使用 Cookie

我们使用 cookie 来改善您的体验,支持应用程序使用分析并启用聊天支持。请阅读我们的隐私政策 for more.