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Author: Admin | 2025-04-27
Might be in its market cycle.As an example, the Bitcoin Rainbow Chart is a visual representation of the market cycle for Bitcoin over time. It uses the colours of the rainbow to depict the stages of a typical market cycle, ranging from a bear-market bottom (blue) to euphoria (red).For beginners, understanding the Crypto Rainbow Chart involves recognising patterns of market sentiment and buyer behaviour.During the accumulation phase, prices are typically low, and traders slowly start to accumulate positions. As prices rise, the market enters the expansion phase, which can lead to optimism and ultimately euphoria. This may then be followed by a correction, as prices can become overinflated. If this occurs, it can lead to a bear market and the accumulation phase starting again. In the snapshot above, we have exited the accumulation phase, and the Rainbow Chart indicates the best plan of action is to HODL.Learn more about the four phases of a crypto market cycle.Crypto RSIThe Relative Strength Index (RSI) is a popular momentum indicator used in technical analysis to measure the speed and change of recent price movements in a cryptocurrency with the same representation in traditional finance. RSI is displayed as an oscillator on a scale of 0 to 100, providing insights into whether an asset is overbought or oversold based on its recent price momentum over a specified period, usually 14 days.For beginners, the RSI serves as a valuable indicator to identify potential buying or selling opportunities in the market. When the RSI value exceeds 70, it suggests that the cryptocurrency may be overbought, indicating a potential sell signal. Conversely, when the RSI falls below 30, it indicates that the cryptocurrency may be oversold, presenting a potential buying opportunity.To use the Crypto RSI effectively, consider RSI signals in the context of broader market conditions and avoid making decisions solely based on RSI readings. Additionally, combining RSI analysis with fundamental research can provide a more comprehensive understanding of an individual cryptocurrency’s potential price movements, as other factors like upcoming token drops or roadmap milestones (upgrades, halvings, etc.) can also influence its price.Altcoin SeasonThe Altcoin Season Index is a metric designed to assess the performance of top altcoins relative to Bitcoin. Altcoin seasons typically occur when altcoins outperform Bitcoin in terms of price appreciation in a certain period. The index calculates the percentage of top altcoins (e.g., top 50) that are outperforming Bitcoin over a specified period
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