How to use the Bitcoin rainbow chart

Many may have seen this chart, but today I will tell you how you can use it as an indicator to help you decide whether to sell or buy Bitcoin.

Purple and blue (💀 Bitcoin is dead - its price is very cheap)

If you are a long-term investor, these are the best areas for you (your dream area).

Historically, these are the best buying areas and from these areas Bitcoin achieves returns of 5 to 20 times.

Colors at the green level (🐳 Accumulation areas / Bitcoin price is cheap)

These areas are the best for accumulation before the Bull Run begins and the opportunity for you to buy to ride the upward wave and often the global market atmosphere at that time is volatile and there is fear, anxiety and doubt and some reach the stages of despair.

Yellow and Orange (⏳ FOMO / Hold Coin HOLD)

These areas are the time when we start to see small investors and companies investing in the cryptocurrency market and everyone starts talking about Bitcoin and many new investors enter the market and at this stage we start to see the beginnings of inflation in the price of Bitcoin and other cryptocurrencies.

Red (🚨 The maximum of the bubble area)

At this stage, Bitcoin has reached the maximum inflation stage and it is a strong sell signal.

Historically, after reaching these areas, the market begins to correct and we enter the bear market stage 🐻