This Rainbow chart is not investment advice. Our labels only use the default labels for the rainbow chart, and are not meant as investment advice or strategy. Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.
What is the Bitcoin rainbow chart?
The Bitcoin Rainbow Chart is a long-term valuation tool for Bitcoin, employing a logarithmic growth curve to forecast potential future price directions.
This chart overlays rainbow-colored bands on the logarithmic curve, each color indicating different market sentiments.
Our chart
We made this based off of the original rainbow chart, as discussed on the bitcointalk.org forums.
Bands
The chart categorizes Bitcoin's price into bands ranging from blue (highly undervalued) to red (overbought).
Origin
Initially conceived in 2014 by the Bitcoin community member "Trolololo" on the Bitcoin Talk forum, the chart has evolved to become a widely recognized meme in the Bitcoin space.
Becoming a Meme
Despite its humorous origins, the Rainbow Chart offers a unique perspective on Bitcoin's price movements, smoothing out the asset's volatility and providing a "bigger picture" view of its growth trajectory.
