How accurate is the BTC RAINBOW chart?

[BlackHatCoiner]

I don't believe in rainbow charts. I believe in supply and demand. And there's something telling me that there's going to be a lot of demand within the next 8-10 years. And that something is hyperinflation and repealing of cash.

For example nobody could foresee the effects of the pandemic in 2020 on global economy and the effect of economy crashing on bitcoin price. Same as today.

Few did foresee this coming, and even fewer took advantage.

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[cryptosize]

For example nobody could foresee the effects of the pandemic in 2020 on global economy and the effect of economy crashing on bitcoin price.

Not really.

I had predicted a huge economic crisis in 2022 back in 2020.

It wasn't that hard to predict it: stimmy checks and FED printing 10 trillion USD out of thin air.

A crisis is like a tsunami in the open sea = it takes a while to reach the shore.

If you know that an earthquake happened in the open sea, it's not hard at all to predict the incoming tsunami.

Good thing I had plenty of time back in 2020 to abandon the (fiat) shore.

[trendcoin]

A graphic with continuous impulse waves satisfies everyone, but is unrealistic. As a matter of fact, we can observe this right now. We may soon have to add areas of ultraviolet light to the chart. :)

Markets can be read correctly with the help of technical analysis, but they cannot be explained forever with a simple parameter. Because Bitcoin Rainbow Chart overlooks this fact, it draws an image far from providing solid and consistent results.

[pooya87]

For example nobody could foresee the effects of the pandemic in 2020 on global economy and the effect of economy crashing on bitcoin price.

Not really.

I had predicted a huge economic crisis in 2022 back in 2020.

You are right the economic crisis in 2022, it was easy to predict even though many didn't want to accept it. I also have been talking about it all this time ever since the news about governments printing money like maniacs came out 2 years ago.

But the one in 2020 was not predictable at all. People were talking about recession and all that forever but nobody could say "a lab-made virus is going to cause a pandemic and lead to economy crashing hard in 2020".

[NotATether]

I don't believe in rainbow charts. I believe in supply and demand.

That's basically what a rainbow chart shows. Have a look:

This price surprisingly mirrors previous trends. The last time this kind of thing happened was in March 16 2020, at the onset of the pandemic - basically Bitcoin was in free fall back then.

Eyeballing the chart, it seems that the previous bear cycle on the chart made a recovery after 6 months. Our drought began in about June after all the bankruptcies. And if any of that is to go by, it means we're already in 4 months and have 2 months left of bear season before prices make a modest recovery to $25K - $30K. So stack your sats while they are still cheap

[Leviathan.007]

As it has been shown in many analyses by experts, the bitcoin rainbow theory is just a theory and is based on a number of analyses. According to this chart, there is a long-term theory based on the history of the price of bitcoin, and especially on the previous halvings in the past which may happen again in the future, so if you believe it, then this chart should be accurate enough for you to trust. Thus, for those who are looking for long-term plans, I believe the rainbow analysis is very much trustworthy.

[MinMan]

For example nobody could foresee the effects of the pandemic in 2020 on global economy and the effect of economy crashing on bitcoin price.

Not really.

I had predicted a huge economic crisis in 2022 back in 2020.

You are right the economic crisis in 2022, it was easy to predict even though many didn't want to accept it. I also have been talking about it all this time ever since the news about governments printing money like maniacs came out 2 years ago.

But the one in 2020 was not predictable at all. People were talking about recession and all that forever but nobody could say "a lab-made virus is going to cause a pandemic and lead to economy crashing hard in 2020".

Honestly it wasn't really a big task neither. We have seen in 2020 that pandemic was going on, and governments of all nations were printing money like it’s free, and to calculate that it would cause economical crisis wasn't that hard.

Sure the war put some more on top of that which we didn't know about back then to be fair, it was something unexpected and made it even worse, but even the inflation part was known and enough to calculate that the moment inflation got out of hand and we started to look for something to stop it, it would cause recession. Pandemic started in 2019, meaning in 2020 it was already on full on affect and we had lockdowns in 2020, meaning you didn't have to guess what pandemic would do in 2020, you were already living in it.

[gabbie2010]

I don't believe in rainbow charts. I believe in supply and demand.

That's basically what a rainbow chart shows. Have a look:

This price surprisingly mirrors previous trends. The last time this kind of thing happened was in March 16 2020, at the onset of the pandemic - basically Bitcoin was in free fall back then.

Eyeballing the chart, it seems that the previous bear cycle on the chart made a recovery after 6 months. Our drought began in about June after all the bankruptcies. And if any of that is to go by, it means we're already in 4 months and have 2 months left of bear season before prices make a modest recovery to $25K - $30K. So stack your sats while they are still cheap

From my own point of view it's very obvious with reference to the rainbow chart that when the price dumped to buying zines with few days or months to bitcoin Halving there is a rapid price recovery after Halving, historically that had repeated itself, however presently the price is at buying mode but far away from next Bitcoin Halving bill for May 04, 2024 08:54:30 PM, personally I will buy and hodl and sell if there is some remarkable pump in the price and wait till another dump to buy and hodl untill we get nearer to the next Halving if price dump again closer to that date then buy massively and accumulate.

[Thomas Kralow]

One can safely assume that we are in an accumulation phase for the next 2 years now? Or can we expect some action in the next 2 years? Was the mid 2019 a mini bull run? Currently price is just peeking out the bottom of the "Fire Sale" blue band, is this gearing up for a mini run like in mid 2019? There are certainly features on display that might suggest this? A possible W formation since the June 17.6k low to now (though now confirmation yet), Fear + Greed is relatively on the fear side at 20, consolidation since early September... What do we think?
I think it is human nature to prepare for the worst or try to look for the most complicated answer, when sometimes it's all there in front of us... For those of you who were looking at this chart in late 2019 or early 2020, what were you thinking?

I can't upload pics but here is a link...
https://www.blockchaincenter.net/en/bitcoin-rainbow-chart/

The rainbow picture is my pointing mark, a picture I believe in very much, it gave me two inspirations: 1. It gave me confidence, and the distinct colors also gave me visual enjoyment. 2. The most important thing is to tell us that now is the best time to start bitcoin no matter what time. Don't wait, the current price is the best price. 3. Give me the best risk control area, and tell me when is the time and node to avoid risks. What other opinions do you have?

[TungTresa]

In the crypto industry you want to catch the next wave of bull market opportunities you have to have a quality circle, and everyone will be able to group together and keep insight. If it's just you, looking around and realizing there's no one, it's actually hard to stick around inside this industry.
It is better to get to know more elites in the industry than to believe in rainbow charts.

[franky1]

I can't upload pics but here is a link...
https://www.blockchaincenter.net/en/bitcoin-rainbow-chart/

taking 2 images,, you can crop and scew them..
(log scale vertically. width of price chart image)
(rainbows shape of elipse(perfect curve or starts as curve then straightens))


the rainbow is not a perfect curve. its a curve at the left and a straight at the right.
 the thickness of the rainbow does not have the price lows line up with the blue and the highs do not line up with the red

in short..
ITS MEANINGLESS
if you are trying to see where the rainbow leads to as a indicator of future path..  dont. its not a path. its just a manipulation of 2 images to look pretty and pretend to show something

however
for CURRENT PRICES

taking for instance full time ATH
$75k
and attributing a colour scheme (i prefer traffic lights)
and then putting where current price is within that range
|||||||||||||||
  ^
shows if bitcoin is a good deal to buy right now or bad
(each | is $5k)

[crwth]

It's really a good thing to see and interpret it so that you can really absorb and understand what happened in the past that could make that kind of "rainbow" chart in the link you have given. It's perfect for adding something you can look forward to and profit with. It's hard to bet on something you are unsure of, but it's best to analyze what you have first and ensure that you invest in something you can afford and risk.

[Hispo]

I have checked this chart before, I have always given it some credit.
However, some people in the community take it as a meme chart with little value, specially because some weeks ago the person behind the chart was considering to add another color on the inferior level, which prompted people to mock them on Twitter, in the end they decided not to add the additional band as lowest support.

By the way, I just checked the chart and it seems that we have gone though the last color support because this FTX disaster, we are now completely in black territory.

What is cheaper than a Fire sale, I ask?

[dansus021]

just like the other indicator I think rainbow chart can be failed

but look at the past is pretty accurate right. bitcoin price is plummet because it has been attack a dozen of problems in real life unlike the other year so maybe the rainbow chart need to be recalculate for the next year