infamous bitcoin rainbow chart Updated to include a new lower band called “1BTC = 1BTC”. This chart reflects his PlanB stock-to-flow model in terms of sentiment, showing when bands buy and sell bitcoin.
“The original rainbow chart is dead. Long live the rainbow charts with the new indigo band! ”
twitter account @rohmeo_de He commented that the new Indigo band was “always missing”.
In November 2013, BTC broke through the upper band before returning to the parameters, but in January 2014 another upper break occurred.
However, given the bearish macro backdrop and the deactivation of the stock-to-flow predictive pricing model, @omgbruce Mocked the update and implied it was a desperate attempt to maintain its effectiveness.
smile! ! 😂 Rainbow 🌈 chart updated lower limit of 1 #btc = 1 #btc 🫣https://t.co/T1hnYlQlGK
— Bruce (@omgbruce) September 19, 2022
bitcoin rainbow chart
The Bitcoin Rainbow Chart shows the price of BTC logarithmically across 10 bands representing different stages of sentiment. The general idea is that the price will move between bands to indicate a possible call to action, such as selling in a very hot market.
As with all predictive pricing models, the price should not exceed the upper or lower bands. Otherwise, the calculations to derive the band positions must be invalid, or at least incomplete.
Its creators warn that charts are not investment advice, past performance is not indicative of future results, and charts are a fun way to see long-term price movements.
“Basically Fire Sale” was the previous lowest band before the new lowest “1BTC = 1BTC” band was added.
Sept. 19 sees Bitcoin dip into the new “1BTC = 1BTC” band in a weekend plunge that lasted until Monday. At 08:00 UTC, the bull stepped in at his $18,200, halting the fall and sending BTC to his $18,800.
Since then, the $18,800 resistance has been retested two more times and the bulls have failed to break it so far.
With macro factors weighing heavily on the crypto market, returns above $20,000 are unlikely in the short term.
The bottom on the revised rainbow chart is around $16,900.
Disable Stock-to-Flow (S2F)
Plan B’s S2F model predicts the price of Bitcoin based on current production rates.that is $100,000 BTC price from now until May 2024.
Despite past deviations, the model shows a large divergence around June, with some calling it invalid or even harmful because of the false sense of hope that price prediction models can give. There was
In response, Plan B recently said on Twitter that it believes S2F is still in effect and hopes to return to normal by the next halving.
Some people ask if the S2F model is still valid. That’s right. I can give a technical explanation for autocorrelation and cointegration, but the key is his IMO that BTC price is not off by a lot or a little compared to his 2011, 2013 and 2017 is. The IMO S2F model is valid and we expect a rebound above the S2F model value by the 2024 halving. pic.twitter.com/fbjskn5LFH
— PlanB (@$100 trillion) September 12, 2022
