This chart combines two key pieces of information: the price of Bitcoin over time and the percentage drawdown from the most recent all-time high (ATH). It visually helps analyze the relationship between Bitcoin’s price movements and how far it has fallen from its highest recorded value. Here’s an explanation of the chart components:

1. Bitcoin Price (Line Series – White Color)

The white line represents the price of Bitcoin over time in USD. As the line progresses, it shows how Bitcoin’s value fluctuates during each period, giving a clear view of its price performance. Observing the line gives insight into the growth or decline of Bitcoin’s market price.

• What You See: The white line follows Bitcoin’s price in dollars, indicating its fluctuations over time.
• Important Insight: Spikes and drops in the Bitcoin price can be connected to market events or sentiment shifts, and this line gives an overall sense of how the asset is valued in the market.

2. Drawdown from Last ATH (Column Series – Red and Cyan)

The column series, represented by red and cyan columns, shows the percentage change from the most recent ATH (All-Time High) of Bitcoin. This measures how much Bitcoin’s price has dropped (drawdown) since its highest peak.

• Positive Values (Cyan): When the Bitcoin price is above the most recent ATH, the columns are colored cyan and indicate a recovery or growth from the peak.
• Negative Values (Red): When the price is below the ATH, the columns turn red, representing the percentage of decline from the highest price.

3. Correlation Between Price and Drawdown

There’s a direct correlation between the price of Bitcoin and its drawdown. The drawdown percentage shows how far Bitcoin’s price has fallen from its most recent peak. This data is useful to investors to understand the scale of the price correction after a rally.

• When Price Rises: The percentage drawdown starts decreasing, and the columns shift to cyan as the price goes above the ATH.
• When Price Falls: The drawdown increases, turning the columns red, showing a fall from the ATH and indicating the depth of the correction.