What is the Rainbow Chart?
The Rainbow Chart uses logarithmic regression to track Bitcoin's long-term price action across colored zones, from undervalued (cool colors) to overvalued (warm colors).
How to Use:
Blue/Green zones: Historically great buying opportunities.
Yellow/Orange zones: Strong bull market territory.
Red zones: Extreme overvaluation, historically precedes corrections.
Long-term View:
The Rainbow Chart is designed for multi-year perspective. It helps identify market cycles and potential entry/exit points based on historical patterns.