Bitcoin Rainbow Chart: A Tool for Long-Term Market Assessment

The Bitcoin Rainbow Chart is a color-coded tool used to assess the long-term trend of Bitcoin's price. It overlays historical price data on a logarithmic scale with nine colored bands, each representing a different stage of the market cycle.

Each band corresponds to a specific market condition and BTC price range, from Fire Sale (Dark Blue) to Maximum Bubble Territory (Dark Red). The chart does not predict future price movements but shows how far the current price is above or below the long-term trend.

The Bitcoin Rainbow Chart was created by Reddit user Azop in 2014 as a meme and later updated by an enthusiast named Rohmeo in 2019. It uses logarithmic regression to illustrate Bitcoin's long-term price trend and is designed for long-term market assessment rather than short-term price forecasting.