Bitcoin Rainbow Chart

What Is A Bitcoin Rainbow Chart Indicator?

Since its launch, Bitcoin has had a strong grip over the global crypto market with the majority of crypto investors having a valuable investment in the coin. This explains why any price fluctuation that may affect Bitcoin will eventually affect the global crypto market in a similar fashion.

As a result, many techniques and programs have been developed to predict Bitcoin price fluctuations. However, not many have been able to replicate the success of Bitcoin Rainbow Chart Indicators.

The Rainbow Chart is basically a long-term valuation tool, based on a logarithmic growth curve that forecasts the potential future price of Bitcoin. The rainbow colors here aren’t only for making the indicator more appealing but infact serve a practical function. Each color represents the sentiment of the market at a particular instance.

Remember, the Bitcoin Rainbow Chart Indicator is not an investment advisor but is more of an educational tool that can be used to predict future Bitcoin price predictions. How you interpret and translate various factors the chart indicates is totally up to you.

Interpreting Bitcoin Rainbow Chart for valuable predictions

As an asset, Bitcoin is super volatile which explains the volatility of the Bitcoin price index. Although, the chart has adapted to the volatility of the Bitcoin price index on a macro level, dividing the indicators through a series of cycles-based sections. During these individual cycles, the Bitcoin’s price can significantly rise and fall throughout the day while altering the market’s volatility as well.

The BTC Rainbow chart highlights the investor’s sentiment during these cycles which can be used as a tool to predict future price fluctuations. Remember, the warmer upper colors are an indicator of market overheating which is a potentially great time for strategic investors to start making some profits.