The Bitcoin revolution brings with it a large number of terminologies and tools that we were never taught in school or even in university, but which are curious and super striking, managing to capture our full attention to be able to understand in this case what relationship they may have with the 7 colors of the rainbow with the most weighty digital currency today.
THE RAINBOW GRAPH IS THE TOOL through which the progress of the bitcoin (BTC) price is observed in the form of a logarithm. Make use of the colors of the rainbow to make it more attractive to the investor’s eyes. Being able to observe more easy movements of the price of BTC in the long term. For better understanding, you can visit this site https://bitcoin-revolutionapp.com/.
BITCOIN And The 7 Colours Of The RAINBOW
It was developed based on a blog of a young man called TROLOLOLO in 2014, IN THESE GRAPHIC points of information diverge regarding the values ​​SALES AND PURCHASES OF BITCOIN.
On the other hand, the graph reflects quite a few important data such as the reduction of the annual growth percentage of BTC and the possible prices based on this calculation. It does not mean that this is good or bad. It is only the point of view of the creator of the rainbow chart.
Each color band has a name that is unique and even funny. But behind the seemingly frivolous and entertaining shape of this graphic is really something valuable. Some of the names of the bands are maximum bubble territory, SELL. Seriously SELL! HOLD! Still cheap, Buy, Accumulate, among others.
From the red, it represents (“maximum bubble territory”) to the dark blue color (“basically a fiery selloff”). Tips are given to investors and digital currency enthusiasts on what to expect from Bitcoin based on its ascending or descending direction. Right now, even at all-time highs, BTC / USD are still rising and are only in the light green band, which the model describes as “still cheap.”
7 Colours Of Rainbow As An Investment Method
It is important to know that this graph is not an investment method. It is only informative, to be able to observe how the BTC market behaves. This chart is in the top 5 of Bitcoin’s bullish charts according to Cointelegraph.
It can be seen that the graph increasingly points to the fact that the reduction in the annual growth percentage is greater and the more time passes, the more the price of BTC will stabilize, avoiding its long-term volatility.
It is assumed that according to THIS GRAPH, from 2019-2020 the BTC should have reached a price according to its logarithmic curve of about USD 41,000 / BTC, while between 2020-2021 at about USD 74,000 / BTC, at the end of the year, I would estimate a price that would reach up to USD 127,000 / BTC. We can understand the prices of BTC in this graph will always oscillate above or below the logarithmic curve.
Most of the time when the bitcoin block production reduction event occurs, every four years or so, just a few months before this happens, it is an excellent time to buy BTC and this graph predicts it and lets us know about it AN INFORMATIONAL WAY.
Before Making Investments In BTC
It is important that when starting to make investments in BTC and be able to save and invest more money, we must learn to read the TRADING charts, managing to make an excellent technical analysis of the operations in a certain period of time. In addition to being able to know the economic indicators that most impact the movements of the BTC.
This type of graph and others can be found in a variety of software’s that in many cases are free and are easily found on the internet. The three best platforms according to “TRADING GUIDE” are the following:
- Tradingview
- Cryptrader
- Coinmarketcap
On these platforms, you can see several charts simultaneously, and also if it is to our liking we can view the information in addition to the charts.
All these tools are interesting and can be used individually or together, depending on the personality of each investor or trader. Give them a try; spend some time on them so that you can decide for yourself which of these tools suits your expectations.
