Bitcoin ‘Rainbow Chart’ Looking at Possible $600,000 Price

Bitcoin is often compared to gold, and this comparison may not be too far off. According to a Bitcoin Rainbow chart, investors who hold on to BTC for the next two years stand to make huge profits, just like the folklore pot of gold at the end of the rainbow.

The Blockchain Center Rainbow price chart is one of the methods used to forecast the price of cryptocurrencies. This chart illustrates how Bitcoin’s price history can be used to forecast the future performance of the asset.

The BTC price chart indicates that if recent trends continue, the cryptocurrency could reach a value above $600,000. There is hope for the future of the token if the price chart is any indication.

Source: Blockchain Center

The question is, what does this indicate for the most sought after cryptocurrencies in the world in general?

The forecast could be accurate

This concept first appeared on the initial Bitcoin forum in 2014. That was the final chapter in an already epic story. Logarithmic sentiment metrics have been plotted alongside BTC price fluctuations ever since.

From a “fire sale” to a “bubble top”, he correctly predicted the price changes that have occurred between 2012 and the present.

The chart indicates that BTC has already reached the end of the rainbow and is now on the rise. It seems like every five years, the Bitcoin market goes from a fire sell-off low to a bubble territory high.

If the coin breaks this cycle, investors may experience a significant boost in sentiment. The decrease in volatility can promote the favorable price trend.

Dow Jones more volatile than Bitcoin

According to recent reports, the decrease in volatility made the Dow Jones index more volatile than Bitcoin.

However, BTC is not all sunshine and flowers. You can’t be *so* optimistic, so they say.

Recent reports suggest that decreasing volatility heralds a significant increase in price movement instability in the future. Furthermore, analysts show that this decrease in volatility may result in another price drop.

Similar to what was said above, Bitcoin has been compared to gold. However, recent reports indicate that the digital currency is ineffective as a hedge against falling prices in the financial market in general. In the last 24 hours, BTC has seen a drop of 1.4%.

The claim that BTC will hit six figures in two years is optimistic at best and exultant at worst. According to the BBP index, the bears are in control of the market today.

Despite this, we can confidently state 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

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