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The Bitcoin Rainbow Chart is a long-term indicator that represents Bitcoin price behavior and market mood using a spectrum of colors. Each color band, ranging from blue to red, reflects different phases such as undervalued zones, neutral accumulation, and overheated market conditions.
At present, the price is positioned closer to the “slow accumulation” and “relatively undervalued” region, which suggests a calmer and less euphoric market environment. This chart is not designed for short-term trading signals, but rather helps long-term investors understand where the market may be in its overall cycle.