Bitcoin Rainbow Chart

The Bitcoin Rainbow Chart is an indicator that visualizes Bitcoin's price movements with color bands and is used to analyze market cycles. Each color band represents a different market condition.

Starting from top to bottom, Maximum Bubble indicates extreme overvaluation, Sell Seriously signals strong sell conditions, FOMO Intensifies shows high buying pressure, Is This a Bubble warns of potential bubble formation, Hold suggests maintaining positions, Still Cheap indicates potential undervaluation, Accumulate suggests gradual buying, Buy signals strong buying opportunities, and Fire Sale represents extreme undervaluation periods.

The colored bands shown in the chart are created based on Bitcoin's historical price movements. The topmost red bands indicate overbought regions, the middle green bands indicate balanced regions, and the bottom blue bands indicate oversold regions.

This indicator can be used as a guide for long-term investment decisions. However, it should not be used as a standalone trading signal but should be evaluated together with other technical and fundamental analysis tools.