Bitcoin just broke below the floor of its famous Rainbow Chart into the ‘BTC is dead’ zone
A 50% drop from recent highs has pushed the asset into a zone historically labeled as a dead end, sparking a debate among crypto analysts.
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Summary
- Bitcoin has fallen below the lowest band of the long-running Bitcoin Rainbow Chart for only the second time, dropping into the original model’s “Bitcoin Is Dead” zone around $62,500.
- Analysts are split on whether the breach signals that bitcoin is deeply undervalued or that the Rainbow Chart itself is outdated as ETFs, institutional investors and macro forces reshape the market.
- Many experts now view the Rainbow Chart and similar models as sentiment gauges rather than predictive tools, noting that bitcoin’s growing maturity and liquidity have weakened the four-year boom-and-bust patterns those models were built on.
