How exactly are these Bitcoin prediction charts (AKA Rainbows) even calculated?

We have all thought of this question, and I have asked my math nerd friends (one who went to MIT) about it, and yes he invests in Bitcoin. He explained it, in way too complicated terms back in 2018 to me. The chart he showed me was not a rainbow chart, but a more large scale one. I believe it was this one: [https://twitter.com/100trillionusd/status/1444228421228417024](https://twitter.com/100trillionusd/status/1444228421228417024)

I prefer the more easy to understand Rainbow chart, since it shows exactly when to hold, when to accumulate, and when to for sure sell if overpriced.

However, explain to me in simple terms why is it that a chart made years ago is so accurate? And is it true in your opinion if you believe these charts that Bitcoin will be worth over $1 million a coin in 2025?

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