Bitcoin ‘Rainbow Chart’ Looking At Possible $600,000 Price
Bitcoin is often compared to gold, and this comparison may not be far off. According to a Bitcoin Rainbow chart, investors that hold onto BTC over the next two years may reap humongous gains – much like folklore’s pot of gold at the end of the rainbow.
The Blockchain Center’s Rainbow price chart is one of the methods used to forecast the crypto’s price. This graphic illustrates how Bitcoin’s price history can be used to forecast the asset’s future performance.
The BTC price chart indicates that if recent trends continue, the cryptocurrency might reach above $600,000 in value. There’s 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 Could Be Accurate
This concept first appeared on the initial Bitcoin forum in 2014. That was the final chapter of an already epic tale. Logarithmic metrics of sentiment have been plotted alongside BTC price fluctuations since then.
From a “fire sale” to a “maximum bubble,” it properly predicted the price changes that have occurred between 2012 and the present.
The chart indicates that BTC has already reached the bottom of the rainbow and is now rising. It appears that every five years, the Bitcoin market goes from a fire sale low to a maximum bubble territory high.
If the coin breaks this cycle, investors may experience a significant sentiment boost. The decline in volatility can promote the favorable price trend.
Dow Jones More Volatile Than Bitcoin
According to recent reports, the decline in volatility made the Dow Jones Index more volatile than Bitcoin.
However, BTC is not all sunshine and flowers. Can’t be *that* optimistic, so they say.
Recent reports suggest that the decline in volatility portends a significant increase in future price movement instability. Furthermore, analysts demonstrate that this decline in volatility can result in another price decline.
Similar to what was stated previously, Bitcoin has been compared to gold. However, recent reports indicate that the digital currency is ineffective as a hedge against declining prices in the broader financial market. In the past 24 hours, BTC has experienced a 1.4% decline.
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 in control of the market at present.
Despite this, we can confidently assert that there’s 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
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