The colorful rainbow colors chart was first introduced back in by a Reddit user &#;azop&#;. The creator&#;s intention was simply just for fun and to benefit the fellow Bitcoin investors community in r/BitcoinMarkets with a little update here and there once in a while. With its unique colors and surprisingly high accuracy, the chart has gotten the nickname &#;Bitcoin Rainbow Chart.&#;

The chart follows a logarithmic regression introduced by Bitcointalk user &#;trolololo&#; back in The rainbow chart simplified and divided each regression trend into different colors with easy to understand captions such as Red means &#;to sell&#; and Blue means &#;to buy.&#;

Later on, a Bitcoin enthusiast Über Holger has made an improvement on the chart, while further clarify each color&#;s meaning as well as adding halving periods into the calculation.

Image Courtesy: conwaytransport.com.au

At the time of writing, according to the Rainbow Chart, Bitcoin price is leaving Dark Blue &#;Basically a Fire Sale&#; territory and entering &#;BUY!&#; territory. However, the creator have noted that this chart is only meant to be a fun way of looking at a long term price movement, and by no mean that this chart can predict the future. He also added this basically means &#;it will only be correct until it isn&#;t.&#;

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