Cryptocurrencies continue their bearish movement in bear market conditions. Bitcoin fell to the lowest level in the last 2 months, returning to the $ 18,000 band today. Cryptocurrency investors, on the other hand, are wondering where the Bitcoin price drop will stop, while evaluating all kinds of data about it.
The Bitcoin Rainbow price chart, created by Blockchaincenter, offers a fun chart by using regression levels for Bitcoin price prediction. The chart, which first appeared in 2014, was developed to form an idea for long-term price action based on Bitcoin's past price action.
Currently, the chart shows the $16,700 levels as the bottom price for Bitcoin price after the Fed rate decision this week. It is worth mentioning that the color bands on the chart, which provides a quick overview of Bitcoin's long-term outlook, were created with a logarithmic approach, but have no scientific basis. The developers, who made warnings about the chart, emphasize that the Bitcoin Rainbow chart is not an investment recommendation, while underlining that the past price performance does not provide a definitive indicator for future results. Besides, the chart is described as a fun way to provide a long-term perspective on BTC price, ignoring short-term volatile movements.
In the graphic model, in which Bitcoin halving periods are highlighted, the peak and bottom levels of the BTC price can be easily seen in the post-halving (reward halving) periods since 2013. As seen in the graph, the peak region reached after the first halving reached the highest level according to the logarithmic color zones, while the peaks seen in the other post-halving periods remained in the lower regions. The bottom areas reached after the summit have remained just above the purple area so far. From this point of view, the Bitcoin Rainbow chart offers an inference that the $16,000 band may be the bottom region.
Bitcoin started the week with seller-heavy transactions. BTC, which fell to $ 18,230 during the day, has lost 6% of its value since the opening. While there was some backlash during European trading hours, BTC/USD rose as high as $18,700. With today's drop, Bitcoin has lost 16% in the last week.