Part 3/8:
Before diving into any altcoin, the first step is analyzing the broader cryptocurrency market. I employed a simple yet effective tool known as the Bitcoin Rainbow Chart. At first glance, this tool may appear whimsical, resembling a child's drawing, but there lies robustness in its simplicity.
The chart categorizes Bitcoin's price levels into nine zones, ranging from "fire sale" to "maximum bubble territory." This historical snapshot of Bitcoin's performance helps investors identify optimal buy and sell points. Currently, the chart indicates we are in the "still cheap" zone, suggesting it might be an excellent opportunity to accumulate more crypto.