Bitcoin Rainbow Chart
Where Bitcoin's price sits against a long-run regression of its own history — nine bands from "fire sale" to "maximum bubble".
Updated · history Bitstamp
- Bitcoin
- $63,494
- Fair-value line
- $140,211
- Price vs the line
- −54.7%
- Maximum bubble territory$424K–$582K
- Sell. Seriously, sell$309K–$424K
- FOMO intensifies$225K–$309K
- Is this a bubble?$164K–$225K
- HODL!$120K–$164K
- Still cheap$87.23K–$120K
- Accumulate$63.56K–$87.23K
- BuyBTC$46.32K–$63.56K
- Basically a fire sale$33.76K–$46.32K
Bitcoin at $63,494 is in band 2 of 9, "Buy", on our rainbow chart. The regression's fair-value line is $140,211 today; the band runs from $46,322 to $63,565.
Price against the bands since 2011
Log scale, daily closes, with the bands drawn two years ahead.
How this chart is made
We fit one straight line through Bitcoin's history on log–log axes: the logarithm of the daily closing price against the logarithm of the number of days since the genesis block (3 January 2009). Ordinary least squares over 5,568 daily closes from Bitstamp since August 2011 gives:
log₁₀(price) = -16.090 + 5.567 × log₁₀(days since genesis)
The residuals have a standard deviation of 0.281 in log₁₀ terms. The nine bands are spaced evenly from 2.2 standard deviations below the line to 2.2 above it. The fit is recomputed every day, so the bands move slightly as each new close is added.
Rainbow charts became popular around 2014 as a joke with a serious core: Bitcoin's growth has slowed in a way that a power-law line describes surprisingly well. That is a description of the past. Nothing guarantees the next cycle follows it, and the band names are the genre's tradition, not our advice.
Questions
What band is Bitcoin in today?
Is this the same as other rainbow charts?
Can it predict the top of a cycle?
Not financial advice. Figures are for information and can be delayed or wrong; crypto assets are volatile and you can lose everything you put in. See our methodology and disclaimer.