What is the Bitcoin Rainbow chart? đ
The #Bitcoin Rainbow Chart shows Bitcoin's price trends using colored bands. It helps indicate whether Bitcoin is overvalued, fairly valued, or undervalued đ§ź
Each color band represents a different price range. For example, dark blue means Bitcoin is highly undervalued, while dark red suggests it's overvalued.
đ Although the chart is useful for spotting trends, it only uses historical data. Itâs best to combine it with other tools like trading volume and technical analysis.
Where we are now?
The Bitcoin Rainbow Chart shows Bitcoin's price is now in the "HODL!" zone. This means itâs fairly valued based on past trends đ
If the price rises, it will enter the "Is this a bubble?" zone, signaling possible overvaluation.
If Bitcoin drops into the green or blue bands, it suggests undervaluation and a better buying opportunity đ
