Using Coinglass Rainbow Charts | Developing Futures Strategies

1、What Is the Bitcoin Rainbow Chart Indicator?

The Bitcoin Rainbow Chart is a long-term, logarithmic valuation model used to visualize Bitcoin's historical price movements and market sentiment over time. It overlays a rainbow-colored band across a logarithmic growth curve, with each color representing a specific sentiment zone—ranging from undervalued to overvalued conditions.

This chart is updated daily to reflect the latest BTC closing price

making it a useful macro indicator for investors and traders assessing Bitcoin’s potential buy or sell zones across market cycles.

Color Bands and Market Sentiment:

Dark Blue – "Basically a Bargain Sale" → Indicates Bitcoin is severely undervalued.
Blue – "Buy Now!" → Signals Bitcoin is clearly undervalued.
Green – "Overweight" → Suggests the asset is still undervalued.
Light Green – "Still Cheap" → Slightly undervalued, showing early bullish potential.
Yellow – "HODL Zone" → Reflects a fair or reasonable valuation.
Orange – "Is This a Bubble?" → Bitcoin may be entering overvalued territory.
Light Red – "FOMO Zone" → Price is likely overextended, driven by hype.
Red – "Sell Now!" → Strong signal of serious overvaluation.
Deep Red – "Maximum Bubble Zone" → Indicates an extreme overvaluation, historically followed by sharp corrections.

2、How to View the Bitcoin Rainbow Chart on Coinglass

Open your web browser and go to coinglass.com.
On the homepage, navigate to the top menu and click on [Data].
From the dropdown menu, select [Bitcoin Rainbow] to view the interactive chart.

Disclaimer

This article is not intended to provide

(I) investment advice or investment recommendations;

(Ii) an offer or solicitation to buy, sell or hold digital assets;

(Iii) Financial, accounting, legal or tax advice. Digital assets held (including stablecoins and NFTs) involve high risk and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is appropriate for you based on your financial situation. Please consult your legal/tax/investment professional for your specific situation. Please be responsible for understanding and complying with relevant local applicable laws and regulations.

About Bitunix

Bitunix is a global cryptocurrency derivatives exchange trusted by over 3 million users across more than 100 countries. At Bitunix, we are committed to providing a transparent, compliant, and secure trading environment for every user. Our platform features a fast registration process and a user-friendly verification system supported by mandatory KYC to ensure safety and compliance. With global standards of protection through Proof of Reserves (POR) and the Bitunix Care Fund, we prioritize user trust and fund security. The K-Line Ultra chart system delivers a seamless trading experience for both beginners and advanced traders, while leverage of up to 200x and deep liquidity make Bitunix one of the most dynamic platforms in the market.

Bitunix Global Accounts