Bitcoin Rainbow Chart
It fits BTC's historical price on a logarithmic growth curve and uses colors to show long-term zones from undervalued to overheated.
This rainbow chart fits BTC daily prices to a logarithmic growth curve and builds color bands from historical residuals. It is a long-term valuation learning tool, not a buy or sell signal, and it does not promise returns.
What it means
The Bitcoin Rainbow Chart uses colored bands to show BTC's relative valuation and market mood across long cycles.
It fits BTC's historical price on a logarithmic growth curve and uses colors to show long-term zones from undervalued to overheated.
How to read it
- Blue/green: relatively low
- Yellow/orange: warming valuation
- Red: high bubble risk
Limitations
It is based on historical fitting and cannot predict the future.
Formula
It fits BTC's historical price on a logarithmic growth curve and uses colors to show long-term zones from undervalued to overheated.
How to use
- Check which color band price is in.
- Treat color as a temperature gauge, not a trading signal.
- Compare with other indicators.
Chart data
| How to read it | Limitations |
|---|---|
| Blue/green: relatively low | It is based on historical fitting and cannot predict the future. |
| Yellow/orange: warming valuation | It is based on historical fitting and cannot predict the future. |
| Red: high bubble risk | It is based on historical fitting and cannot predict the future. |
FAQ
Limitations
It is based on historical fitting and cannot predict the future.