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Bitcoin Rainbow Chart API

Logarithmic regression model categorizing BTC price into color-coded zones representing different market phases (fire sale to bubble territory).

Webhook URL
https://api.hunchmachine.com/webhook/indicators?indicator=rainbow_chart&api_key=YOUR_API_KEY

Description

Implements the classic Bitcoin Rainbow Chart — a logarithmic regression model that estimates Bitcoin's long-term fair value and categorizes price into color-coded "zones" representing different market phases (e.g., fire sale, HODL, bubble territory). This indicator offers an intuitive, data-driven way to visualize where BTC sits within its historical growth curve.

What this endpoint provides

A simplified, programmatic version of the Rainbow Chart that includes fair value estimation, log deviation, and current zone classification. It allows automations and AI agents to assess whether Bitcoin is undervalued, fairly priced, or overheated in a cycle context.

Response fields

value

Latest BTC price in USD.

fair_value_usd

Estimated fair value according to the rainbow regression model.

deviation_log

Logarithmic deviation from fair value (negative = undervalued, positive = overvalued).

zone

Current rainbow zone label (e.g., 🔵 Fire Sale, 🟡 HODL!, 🔴 Bubble Territory).

zone_score

Numeric representation of the current zone (1–10 scale).

trend

Directional trend classification (up, down, or neutral).

momentum_state

Describes whether price is moving faster or slower relative to the fair value curve (accelerating, stable, cooling).

summary

Human-readable interpretation summarizing value, fair value, zone, and deviation.

timestamp

UTC time of the latest update.

Output example

[
  {
    "indicator": "rainbow_chart",
    "timestamp": "2025-11-01T03:03:18.052Z",
    "value": 109777.86,
    "fair_value_usd": 83266.03,
    "deviation_log": 0.2512,
    "zone": "🟢 Still cheap",
    "zone_score": 4,
    "trend": "up",
    "momentum_state": "stable",
    "summary": "BTC $109,778 vs rainbow fair value $83,266 → Zone: 🟢 Still cheap (log deviation 0.25)."
  }
]

Interpretation & Use

The Bitcoin Rainbow Chart contextualizes price within long-term logarithmic regression bands: • 🔵 Fire Sale / 🔵–🟢 zones → Deep accumulation territory. • 🟡 HODL! / 🟠 FOMO → Fair-to-hot valuations. • 🔴 Bubble Territory → Historically elevated risk of cycle tops. Because the model smooths price via regression, it excels at macro framing rather than intraday timing. Use zone and zone_score to describe valuation levels in dashboards or to trigger automation rules (e.g., tighten risk when entering 🔴 Bubble Territory).