About this tool
This chart plots Bitcoin's long-term price against colored bands meant to frame historical periods of relative over- and undervaluation. It helps long-horizon observers put the current price in the context of Bitcoin's multi-year trend rather than short-term swings.
Price is drawn on a logarithmic scale and overlaid with colored zones fitted to Bitcoin's long-term growth curve, so warmer bands mark historically expensive phases and cooler bands mark cheaper ones. The bands are a descriptive, backward-looking model, not a forecast, and where price sits in a band is a talking point rather than a signal.
Frequently asked questions
What is the Bitcoin rainbow chart?
It is a long-term chart that overlays colored bands on Bitcoin's price on a logarithmic scale, labeling zones from historically cheap to historically expensive. It is meant as a big-picture sentiment illustration, not a precise valuation tool.
Why is the rainbow chart drawn on a logarithmic scale?
A logarithmic scale shows percentage changes consistently, so Bitcoin's early moves and later moves are comparable on the same chart. This makes long-term trends readable despite enormous changes in absolute price over the years.
Is the rainbow chart a reliable price predictor?
No, the bands are fitted to past data and simply describe where price has sat historically, so they are not a forecast. They can be useful for framing sentiment over long horizons but should not be used as a trading signal on their own.