Bitcoin Forum

This is the most bullish and many Bitcoin trader believer is relying on this chart for there personal belief. Now that its on verge of destroying the long time pattern, What so you think will gonna happened on Bitcoin price once this extreme bearish signal finally confirmed.

Even pandemic didn’t make it to destroy this pattern before. We might see another lows in case this pattern becomes invalid since many traders is looking on this and holding on for a long time as TA is a self fulfilling prophecy.

Keep safe and I hope it will bounce.

I do not know much about the rainbow pattern, but I do know that it is good to DCA now which would be profitable in long term. This is not also about trading, it is about investing and about bitcoin price speculation, it would be good if you move this topic to speculation.

As for me, if bitcoin price will decrease further, it will not be significant before the next bull market, DCA now would be profitable.

My initial plan is to put this on speculation but I want to receive a reply base on trading discussion aspect aside from speculation since this pattern is an indicator and I don’t have any idea about this same as you. 

I will start to DCA once the pattern is confirmed to be invalid to make sure I will get the best position I can get. 10K is the next major support while we are already halfway there. I already learned my lesson a lot when it comes to this waiting game on buying the dip. I will be patient this time.

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I want to know how the heck this pattern can be view using tradingview. Is it possible or anyone has the customized code for this indicator?

You are right about price expectations. Really appreciate your ability to be calm in this situation. BTC dump from 69k to 16k. Most investors will jump right into the exchange to buy more BTC at this price. This price of BTC is too attractive to resist and if you really think it's going to touch 10k then still you should start DCA right now. Who knows may be you will not be able to buy at that dip when it comes.

I don't think there is a plugin for this on TradingView, maybe you need to order a custom one (at least the last time I checked it). As you said, it can be classified as a self-fulfilling prophecy so it can be unreliable since it depends on the averages of the past prices. Still a good thing to use if you believe in BTC though, as long as you don't bet everything on it.

Base on the image you provided it seems not really good and a sign that soon or later we will see a new correction in bitcoin graph.. But do you really believe in that indicator? I think you should make a technical analysis using other indicators wherein those popular so that you can convince us that its possible to happen and very accurate.

I agree DCA will benefit if the bitcoin price drops again during a bearish period. DCA will allow buyers to earn more bitcoin if the price drops lower, but I would not fully believe that bitcoin will hit another low around $10K. We should expect the market to recover for some time to come despite the belief that there will be another dip next year.

That rainbow chart has been broken, and I can't really tell what will happen next. The price is feared to go down, but for whatever it is, I think now is the time to invest. DCA will be important if people believe that prices will down further, but it can't hurt to invest everything now.

If we do really tend to look at and analyze that Bitcoin rainbow indicator then it didnt really been able to have a breakout eversince but the recent one is really going off into the line which is something

that we cant really be able to determine whether it could hold or would be totally breaking that point!. There's no way that someone could make out some conclusion but i cant really blame out into those people

who do really believe that this is already the bottom but its not 100% precise and dont make yourself too optimistic but considering about entry or buyback
then the current price isnt really a bad number for you to get in.

Well, there is always a first time for everything. For example, they said Bitcoin had never gone below the previous year's all-time high until it did smash past 20K in May this year during the LUNA crash. Personally, I have never trusted the Rainbow indicator. I mean, someone can draw it from many different angles and curvatures to fit the narrative of the Bitcoin price trend over time.

That is very correct, anyone can make a different rainbow indicator and so the angles or curvatures may vary from one person to another.
As this market is still unpredictable despite of over a decade of existence, we can't tell what will happen next.
This rainbow indicator for me is also very subjective, we can't treat it as the ultimate indicator per se in deducing some conclusions.
Consider other indicators as well in forming some conclusions. Anyway, these conclusions are just merely conclusions, it may or may not happen in the real scenario.

It's just another analysis that has been broken and that's okay. In most of them, there's no perfect analysis and indicator and just as this indicator shows that it has been broken.

The others have also shown the same thing.

This is the nature and beauty of bitcoin, no one can ever predict perfectly what will happen in the future. And that's why if people are telling that it will go to zero, believe them not and just think of the unexpected price to rise soon.

If Bitcoin stays here, its network operates well, healthy and decentralized, you don't need any model to invest in Bitcoin.

What you actually need is your belief in Bitcoin and in order to believe in something, you must have knowledge, at basics at least. You don't have to be a Bitcoin programmers, an outstanding technical analyst to believe in Bitcoin. By reading more about global economic problems especially inflation created by governments, and reading Bitcoin's Whitepaper and its Controlled supply (https://en.bitcoin.it/wiki/Controlled_supply), your belief should be enough to start.

If you are still wondering about Bitcoin and have yet believed in it, read The bullish case for Bitcoin (https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1)

You should really make yourself get used to into different approach and speculations that would be made up into this market which you should prepare for possible break outs of those solid resistances and supports.
Im not saying that it's bad to stick into one analysis but its better to be that versatile on other probabilities which could really possibly happen.Cant really blame for others to stick out with that
Bitcoin rainbow pattern which is indeed you could really say that it do really shows that there's really a cycle on every period which we do really presume out that it would really be continuing
on such trend but no one really knows if it would be following or happening or not.

I agree that this just another analysis but the only difference was it’s accurate for a long time since Bitcoin exist which means this is not the typical analysis that we see on our social media account but rather the interpretation of the bitcoin price history for long time. I’m not a believer of this chart too but since I always seeing this picture on every Bitcoin post on my wall, I start to believe that many traders is checking on it as basis for the Bitcoin future movement.

Breaking the pattern after many years of being accurate is really alarming especially on the current times when the market is experiencing uncertainty due to the recent shit event. I will view this as warning but not a financial advice. It’s still good that we do safety precautions while we still have time.

Please dont use the rainbow chart, it is the perfect example of curve fitting. There are better technical analysis and onchain tools to pick tops/bottoms

I saw this rainbow indicator chart yesterday on some platform. This is the first time I have come across this.
To be honest, I don't rely much on this and think that BTC has a long way to go.
Even if the price of BTC has declined a lot, it only means that we are getting near to bottom.
With every dip the chances of bull run increases which is why we should buy more and DCA in every dip.

I think there is also a case of criticism toward this indicator since it uses an old model and as mentioned by someone above, a curve-fitting method. I think someone also meme'd this to death saying the next rainbow is going to 0$, like what you've seen in everyday fud while we are in bear market. In fact, there has been a new rainbow chart released recently. Don't know how reliable this will be either, especially if the dev keeps changing it when the price movement changes.

I don't know if the rainbow chart will always be reliable for investors in the long term or not but now it seems to have been damaged due to the big drop in bitcoin price.

I know that before it was a good indicator to always believe that bitcoin will always follow the trend without going against the direction, but since this chart has been broken I believe there will be an assumption that no indicator is completely reliable even if it is- proven correct in the previous cycle. I believe it's volatile, so no one knows the future.

I just kept starring at the rainbow to see if there was any TA i can relate with but everything turned out blank. All i can see are lower highs and higher lows showing strong bearish resistance for price to push up. But if the bears finally wins it will be another good time to buy and keep buying.  Nothing shocks anymore in crypto every move is an indication to buy

Looking for more details about this rainbow chart and it looks like unreliable for and not a good basis for your buying and selling point. If you will use this, better also to add other indicator to know if you are on the correct analysis, don’t just use one better to use many for your safe trading. The market is very risky, always choose the best indicators for your to lessen its risk.

If you are aware or does have knowledge in between indicators or these technical tools when it comes into their usage.Then we do know that there are short frame and long time frame which you could input up a

specific indicator or tool which would able to read up.You might be seeing some confirmation in position on short time frame but it didnt really make out some bias on long term ones then as a trader, you would definitely

be hesitating on making an entry point.If there would be breakouts in terms of resistance and support then it is really depending on someones taking whether they would really be making out a position
or would just wait up even more.

It's basically a way to read the charts and the economy, when something unexpected happens all of that goes down the drain and some huge unexpected things at a size of 6+ billion dollars happened so it's fine to be a bit wrong about everything.

Let’s realize that right now there is a panic mood all over crypto and that’s a good thing for us, because if we check the fear/greed index, it’s all time high for fear right now and that’s a very good thing because that means it’s time to buy and time to make a good profit out of everything. This could go back being great again, just because it could be wrong once doesn't mean it will be like that forever so there is no need to lose hope on it for good.

Yeah right. It's kinda like people will believe in a thing until it is proven false.
Now that bitcoin price has fell below the indicator bottom level people will not believe on this indicator anymore.
I know one thing for sure which is there is no indicator that can accurately predict things, not now or in future.
If it were there then everyone would be using it and becoming a millionaire.

Thinking of that rainbow at the end of the edge --it seems it is going down. I don't know this rainbow pattern but it is the first time that I have heard of it. I think too much about the future price but as long as I believed in bitcoin I know there is always an all-time high in the price. Buying in a DCA way will always have an advantage and storing the value in a long term. Each of us has a belief and future insight into the market price, believe on our own and hold bitcoin in a long term --there is no pattern or technical analysis needed.

I'd never check the market chart every day, not even the rainbow indicator because we have seen yesterday still the same as we can see today. Honestly, it only gives us a headache if we keep monitoring the price because it was too hard to see or even impossible to see prices moving high. So, instead of keeping ourselves updated better keep ourselves busy with other stuff. My bag is already full, so I guess that is enough already.
The rise will come soon...

All indicators are just sketches from what happened in the past and we should only use them as a tool for analysis and prediction. I dare say that there is no indicator that can tell us exactly the future, not just this rainbow indicator.

To be honest, I never believed it because I know a lot of people who intentionally draw it and spread it on the market so that we can predict the market just by looking at it. To me, it's no different from a tool offered by the bookie to manipulate us.

Add another dark blue to the bottom of the chart, problem solved.

The thing is, these charts never make any sense. Just because bitcoin is at the bottom of the chart don't mean it is cheap. It is all relative. Bitcoin never experienced a recession during its lifespan and the world will go through a big one in 2023. When everybody stops spending money, we may take a look back and say that $16k/btc was "expensive".

You can only add a set of additional layer if the price will go on that channel in different time span. Base on the structure of this pattern, we might see another color below like what you said in case Bitcoin price recover on the current bear market. The price going out of the rainbow channel only tells us that the channel is already broken and a possible new channel will be form which we don’t have any idea anymore.

Yes the chart itself shouldn’t be use to predict the Bitcoin future price. It’s only purpose is to graph the previous price while the author incorporate a fancy figure to make it attractive.

Inflation is maybe the key factor that will make this rainbow pattern finally construct the downward curve of this rainbow and stop the euphoria of never ending upward movement. This is good in long term because it’s a shake down to remove all the weak hand.

Technically yes since it's an indicator but fundamentally I don't know if that's a reliable stuff to rely on. I may believe in it when we are near at the Bitcoin halving but I have doubts this time, maybe we can hit it multiple times outside that rainbow. We will never know.

The rainbow indicator in the OP has proven firsthand that bitcoin is on the right trend or track. But now this indicator makes people doubt that the same thing will still happen and the trend will be the same in the following years. The indicator broke maybe due to the collapse of Luna and FTX, but I believe we can still believe in the future and potential of bitcoin.

I do not think so. There are lesser possibilities for anything 'unusual' to happen. If you notice, ATH of 2013 was a an exception in the upper side. So, if we have further fall in this bearish trend then that would be another similar scenario and hence in my opinion, it does not mean anything like destroying the usual behaviours of bitcoin markets.

Pandemic caused a 'double bottom' formation (with previous fall) but I agree that fall within a day was within the bottom bandwidth of rainbow chart. Overall, I am confident about reversal of bitcoin market is going to take place by the end of next month or from next year January for sure.

I don't know why I feel that things are going to be slightly different this time. This has happened a lot of times that bitcoin has followed this cyclical movement, these things tend to stop happening after a point as a lot of people are anticipating it and the market makers will do things which they don't want people to anticipate and not the ones they think people would easily find as a pattern. Only if these patterns will break people will feel bitcoin might end and this gives them a chance to fill their bags and accumulate.

Well, I am one of the people who think that when there is a fall, the indicators are generally invalidated, because we have to start from a logic that we must take into account, the market does not behave through an indicator or mathematical tool, there are indicators that fall and others that are put to work well, the perfect indicator would be the one that could find the correct mathematics plus take into account every fundamental or thing that is weighing in the world and can predict more accurately, and also take into account the people's emotions at the global level, I think that an indicator would be good there, even the model that I think works is the S2F.

I feel it's still not broken down completely as it looks like. But yes a few more bearish days and this could look pretty ugly and absolute nonsense. Mostly such charts are bound to break eventually because the big guns know that everyone is following these charts so a lot of people would have filled their buy orders on bottom of the rainbows and these big whales like liquidity in form of buy orders so technically this rainbow chart might just break this time and send us into an array of complete darkness.