Recently, cryptocurrency advocates have been discussing a model of value that many initially claimed would predict the long-term worth of bitcoin. The Rainbow Chart, once disregarded, has now made a comeback as bitcoin’s value has broken through the lower band, rising by 36%.
Bitcoin Rainbow Chart Regains Attention
A few months ago, crypto advocates highlighted several value charts and models that people used to estimate where the bitcoin price would go in 2022. For example, the rainbow indicator, golden rate multiplier, and Fibonacci logarithmic development curves for sequence and Plan B’s stock-to-flow (S2F) pricing model were all used.
As the crypto winter hit and the value models failed to pinpoint the bitcoin price flooring, people began to disregard them, including the rainbow graphic. This week, it has been noticed that the rainbow model’s bitcoin value has fallen into the darkest band. The rainbow chart can be found on a variety of bitcoin-centric websites which feature charts and data, including blockchaincenter.net and lookintobitcoin.com.
Blockchaincenter.net’s chart shows that the bitcoin value has not broken through the lower, darker band of the rainbow, however lookintobitcoin.com’s chart shows a breakout. Lookintobitcoin.com explains how the rainbow chart (or colored bands) is placed over the channel of BTC’s logarithmic growth curve, as an indication when one should buy and when one should sell. Nevertheless, the website emphasizes that “there is no guarantee that past performance will match the rainbow channel and carry on developing in the future.”
Full #Bitcoin Rainbow value chart indicator🙂 pic.twitter.com/lIbUOd3bI4
— Cryptobeliever (@CryptoSportsIO) January 17, 2023
Crypto Twitter has been discussing bitcoin’s grand entry back into the rainbow, with “Rainbow Price Chart Reintegration” trending on social media. “After a dip below the ‘fire sale!’ Blue Band, [bitcoin] made it back to the rainbow. Did you dare to pick some [bitcoin] when it was down?” asked one individual. “[Bitcoin’s] Rainbow Chart is predicting the future… It has shown throughout the history of bitcoin when to buy and sell. You have to study this to
