What Is the Bitcoin Rainbow Chart and How to Use It?

Imagine looking at a weather map rather than a price chart: blue areas signal cold, while red areas indicate heat. The Bitcoin Rainbow Chart works in much the same way. It overlays Bitcoin's historical price trends with the colors of the rainbow, with each shade representing a different stage of the market cycle—from panic and undervaluation to optimism and euphoria.The Bitcoin Rainbow Chart is not a forecasting tool. Instead, it guides long-term investors by helping them assess where the