The Bitcoin Rainbow Charts are a static analyst recommendation tool that tells users when to Buy, Sell, or Hold bitcoin. It’s based on the simple enough notion that it is most profitable when managing your investments to, “Buy low. Sell high.”
While implementing that winning result in something as complicated as the stock market or crypto exchanges is no small feat, that is the gist of investing successfully.
This can also be stated, “Buy cheap. Sell dear,” as Benjamin Graham put it in his widely acclaimed investing book, “The Intelligent Investor.”
The Bitcoin Rainbow Charts are an easy way to check your emotions at the door on the roller coaster ride of bitcoin market cycles. What are you doing here?
Are you really going to keep riding a bull run through next week too and the week after that? Or are you getting greedy for more gains rather than realistic that those gains will be forthcoming in this market?
Or are you getting fearful of missing out on those gains if you scoop some profits to top off your war chest for the next blood in the streets of global asset capitulation?
Also, Bitcoin Rainbow Charts are fun to use as part of planning your next moves while listening to the 2007 soft progressive rock album, “In Rainbows,” by Radiohead, okay computer?
Yes, you are a computer, a massive parallel processor made of fat and protein in a bone cranium, burning at about the wattage of the average household light bulb, somewhere in the range of 40W - 100W.
Anyway, Bitcoin is a massive parallel processor made of silicone and metal in a plastic casing, burning at about the wattage of a small nation, to generate impossible to fake duplicate records of all network transactions.
That’s how Bitcoin makes sure that your money stays your money, forever, until you’re ready to spend it, and then makes sure your receiver gets hold of it reliably, securely, and within minutes.
Bitcoin price movements over the final quarter of 2023 are open questions markets will sort out by the end of the year. The price has fallen drastically from the high of $48,000 where it started off the year.
By January the bitcoin price was already in free fall from a Nov 2021 all-time high price of $68,000 on crypto exchanges. Over the first half of this year, the price corrected drastically. It finally settled in a range-bound movement around the psychologically important key level of $20,000 for Q3.
Bitcoin continues to enjoy bullish signals such as long-term holders’ diamond hands, massive outflows from exchanges, and continued interest and development from well-funded corporate incumbents and institutional investors
Its recent price movements could, however, portend a repeat of 2018’s range-bound trading in the third quarter of around $6K and a price collapse in November with a low of around $3K by Dec 2018.
The Bitcoin Rainbow Charts are an excellent way to time trades. Rather than allowing emotions like greed or fear of missing out to drive your trades, the Bitcoin Rainbow Charts offers some more objective guidance. It can be used along with other tools to stay cool when money is on the line.
These charts can help calibrate a profitable sense of the market from crypto newbies, beginning investors, seasoned bitcoin investors, and crypto traders.
They can help instill the correct approach to markets, helping people who regularly consult them to be willing to buy when it’s profitable but doesn’t feel exciting. They can also help at the other end of the bitcoin market cycle, and help people to be willing to take profits even if it means parting with another chance at increasing their gains before selling.
The Bitcoin Rainbow Charts are not investment advice. They’re simply a tool to help bitcoin investors to understand different strategic considerations some investors take when approaching the market to make decisions.
They cannot be used to predict future market movements with certainty, or guarantee profits or ROI for any crypto investor. They are, however, a historically completely accurate record of the bitcoin price, graphed logarithmically, with a band of recommendations laid over the moving historical price in rainbow colors. And the recommendations would have been successful trades historically, calibrated with accuracy to the reasonable assumptions inherent in the way the data is structured for the Bitcoin Rainbow Charts.
As the price follows the band up to the highest part of the range (it has done this only three times so far), the probability of making a profit by selling increases over a shorter time range. Or conversely, as the price goes down the chart to the lowest part of the range (the chart is calibrated for the price to have spent some one-third of the time in this band), the probability of making a profit by accumulating increases over a shorter time range.
Disclaimer
The information on Coinsniper is user-generated and not verified. Coinsniper does not provide financial advice or facilitate transactions.
Also note that the cryptocurrencies listed on this website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments.
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