Skip to content

‘Bitcoin Rainbow’ indicator consolidates at lowest point as BTC aims to reclaim $17k

‘Bitcoin Rainbow’ indicator consolidates at lowest point as BTC aims to reclaim $17k
Paul L.

Bitcoin (BTC) appeared poised to reclaim the crucial $18,000 support level after briefly breaching the $17,000 position, with bulls under pressure to show strength. However, the asset has since plunged below $17,000 as the broader crypto market sell-off continues. 

Notably, the maiden cryptocurrency has been consolidating in recent weeks, mainly characterized by sideway price movement as investors look for possible indicators likely to define the next price action. 

In this line, Bitcoincenter’s rainbow price chart is one of the tools investors use to monitor the prospects of Bitcoin’s price. The tool leverages colour bands that follow a logarithmic regression and reviews past performance to provide a potential insight into its long-term movements.

As of December 7, the Rainbow chart Bitcoin indicator had hit the lowest point under the ‘’Basically a Fire Sale’ level, represented by the colour blue. The asset has been consolidating at the position, having been stuck in the zone for several weeks. 

Bitcoin Rainbow chart. Source: BlockchainCenter

The charts’ ongoing consolidation indicates that Bitcoin has found a bottom, facing the potential of rallying in the near future. In this line, as reported by Finbold, based on the two-week cross in Bitcoin’s moving average convergence divergence (MACD) that has recently occurred, the cryptocurrency could be preparing for a bottom and big rally soon. 

It is worth noting that the last time Bitcoin hit the level was in March 2020 before embarking on a bull run that culminated in last year’s all-time high of almost $69,000. 

Bitcoin price analysis

As things stand, Bitcoin is changing hands at $16,804, having corrected by about 1% in the last 24 hours. The weekly chart shows BTC’s price peaked at $17,300 on December 5. 

Bitcoin seven-day price chart. Source: Finbold

At the moment, bears have more strength and sustained pressure on the $16,800 support could see Bitcoin drop further to around $16,400.

Bitcoin’s next price action

Notably, Bitcoin has consolidated below $17,000 as investors continue keeping tabs on risks related news likely to affect Bitcoin. 

Besides the fallout from the FTX crypto exchange collapse, investors will be watching the inflation data set for December 13, considering that part of BTC’s poor performance has been tied to the prevailing macroeconomic factors.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.