Understanding of Rainbow BTC | Indodax Academy Dictionary
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Rainbow BTC, or Bitcoin Rainbow Chart, is a colored logarithmic chart used to analyze Bitcoin price movements over time. This chart depicts several colored bands representing different price levels, providing guidance on when it is appropriate to buy, sell, or hold Bitcoin.

The Bitcoin Rainbow Chart was originally created by a crypto analyst named Amadeus Wkazau. This chart consists of colored bands ranging from dark red (low prices) to pink (high prices). Each color band represents a specific price range and can be used as an indicator of when to buy, sell, or hold Bitcoin.

In general, when the Bitcoin price is in the dark red band, it is considered a “cheap” zone to buy. Conversely, when the price is in the pink band, it is considered an “expensive” zone and may be a good time to sell or take profits.

The Bitcoin Rainbow Chart is intended as a long-term analysis tool and is not intended for short-term trading. This chart provides a big-picture view of Bitcoin’s price cycle and can help investors identify when the price is in the overbought or oversold zone.


Examples of Rainbow BTC usage in sentences

“According to the Rainbow BTC Chart, the Bitcoin price is currently in the pink band, indicating that the price may be too high and investors should consider taking profits.”

“Investors who follow the Rainbow Chart strategy will buy Bitcoin when the price is in the dark red band, which is considered the “cheap” zone in the long term.”

“While useful, the Rainbow BTC Chart only provides general guidance and is not a definitive trading signal, so investors should use their own judgment before making a decision.”


Apart from the term Rainbow BTC (which has been explained here), there are many other crypto terms that you can learn more about. You can find information about these terms in the most complete crypto dictionary from Indodax Academy.




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