How to Use the Bitcoin Rainbow Chart
🔵 Blue (💀 Bitcoin Dead – Fire Sale)
If you’re a long-term holder, this is your dream zone. Historically, buying here has often given seasoned investors a 5x - 20x return after enduring a painful bear cycle.
🔵 Green (🍀 Accumulate / Still Cheap)
These shades represent your last chance to accumulate before riding the upcoming bull! Usually, this is where most risk-averse investors still hesitate. Why? The market is often filled with fear, doubt, and despair during these phases.
🔵 Yellow and Orange (⏳ FOMO / Hold)
Yellow and orange areas mark when retail investors start experiencing FOMO. This is where newcomers enter the game, creating market pumps that experienced traders love to profit from.
🔵 Red (🚨 Maximum Bubble Territory)
Here, we’re entering dangerous waters. By the time Bitcoin touches this line, we’re in maximum bubble territory.