The Bitcoin Rainbow Chart: A Colorful (and Controversial) Prediction Tool
The Bitcoin Rainbow Chart is a popular, albeit non-scientific, tool used by some in the cryptocurrency community to gauge the potential future price of Bitcoin. It’s essentially a logarithmic price chart overlaid with color bands ranging from dark red at the top to dark blue at the bottom. Each color represents a different market sentiment, from “Maximum Bubble Territory” (dark red) to “Basically A Fire Sale” (dark blue).