Bitcoin ‘Rainbow Chart’ Looks at Possible Price of $600,000
Bitcoin is often compared to gold, and this comparison may not be far off. According to a Bitcoin Rainbow chart, investors holding BTC over the next two years could reap huge gains – much like folklore’s pot of gold at the end of the rainbow.
Blockchain Center’s Rainbow price chart is one of the methods used to predict crypto’s price. This graphic illustrates how Bitcoin’s price history can be used to predict the asset’s future performance.
The BTC price chart indicates that if recent trends continue, the cryptocurrency could reach over $600,000 in value. There is hope for the token’s future if the price chart is any indication.
Source: Blockchain Center
The question is what does this indicate for the world’s most sought-after crypto in general?
The forecast may be accurate
This concept first appeared on the first Bitcoin forum in 2014. It was the final chapter in an already epic tale. Logarithmic metrics for sentiment have been plotted alongside BTC price swings ever since.
From a “fire sale” to a “maximum bubble”, it predicted the price changes that have occurred between 2012 and today.
The chart indicates that BTC has already reached the bottom of the rainbow and is now rising. It seems that every five years the Bitcoin market goes from a low fire sale to maximum bubble territory.
If the coin breaks this cycle, investors may experience a significant increase in sentiment. The decrease in volatility may promote the favorable price development.
Dow Jones more volatile than Bitcoin
According to recent reports, the drop in volatility made the Dow Jones more volatile than Bitcoin.
However, BTC is not all sunshine and flowers. Can’t be *that* optimistic, they say.
Recent reports suggest that the decline in volatility portends a significant increase in future volatility in price movements. Furthermore, analysts show that this decrease in volatility may result in a further price decrease.
Similar to what was mentioned earlier, Bitcoin has been compared to gold. However, recent reports indicate that the digital currency is ineffective as a hedge against falling prices in the wider financial market. In the last 24 hours, BTC has experienced a decrease of 1.4%.
The claim that BTC will reach six figures within two years is optimistic at best and ecstatic at worst. According to the BBP index, bears are currently in control of the market.
Despite this, we can safely claim that there is a pot of gold at the end of the rainbow for Bitcoin.
BTC market cap at $371 billion | Featured image from HowStuffWorks, Chart: TradingView.com
