Crypto analyst Eric Wall has told his followers that investors have just missed out on the Bitcoin fire sale.
The provocative pundit made the comments after the Bitcoin (BTC) price peaked over $24,000 this Wednesday. Throughout July, BTC has hovered around or below the $20,000 mark.
The price of Bitcoin has since dipped slightly to $22,844, but remains 10.7% up on the previous 30 days.
Rainbows never lie
Eric Wall is basing his most recent assertion on the “Bitcoin Rainbow Price Chart,” an analysis tool created by BlockchainCenter which in Wall’s capable hands doubles as both meme bait and trolling device.
The logarithmic price chart measures Bitcoin price action against a rainbow, with each color corresponding to an action which investors should take. The hot colors of the rainbow represent an overheated market, and have labels such as “Maximum Bubble Territory,” and “Sell. Seriously, SELL!” while cool colors are marked with “Accumulate” and “Buy.”
As Bitcoin prices rose sharply on Wednesday, and the chart shifted from blue to green, Wall took to Twitter to declare that the moment had been inevitable.
“Let’s face it, you always knew this tweet was going to come – you just didn’t expect it to come so soon,” said Wall. “You just missed the fire sale, anon.”
While Wall may strongly advocate for the rainbow chart, his posts on the topic should be taken with a grain or more of salt. As BlockchainCenter themselves point out, the rainbow chart is merely a fun way of examining Bitcoin price action and is not to be taken as serious investment advice.
A wider perspective on Bitcoin
Fellow Crypto Twitter users were quick to point out that Bitcoin price rallies occur even in bear markets, and that crypto winter has a way of biting back. Others participants took Wall’s comments less seriously, seeming to appreciate the irony of slavishly following a price chart based on a rainbow.
The severity of the recent bear market has tested prediction models that previously once looked solid. In June, Vitalik Buterin criticized the stock-to-flow analysis model for providing false certainty in an uncertain market.
“I think financial models that give people a false sense of certainty and predestination that the number-will-go-up are harmful and deserve all the mockery they get,” said Buterin.
The rainbow price chart may remain unbroken for now, but no chart or prediction model can replace critical thought.
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