Bitcoin has fallen below the lowest band of the Bitcoin Rainbow Chart — labelled 'Basically a Fire Sale!' — for only the second time since the November 2022 FTX exchange collapse, a level historically associated with extreme undervaluation. Simultaneously, the Crypto Fear and Greed Index dropped to 12 out of 100, deep within 'Extreme Fear' territory, mirroring sentiment readings recorded during the FTX crisis. The Rainbow Chart is a long-term valuation model that uses colour-coded bands to indicate whether Bitcoin appears overbought or oversold relative to its historical price trajectory. A reading this low has historically preceded significant recoveries, though analysts caution it does not guarantee a near-term price floor. The convergence of both indicators suggests market participants are experiencing acute risk aversion amid broader macroeconomic and crypto-specific pressures.
— Sponsored —
Trade smarter on BYDFI
Get a bonus on your first deposit — from $50 at $100, up to $2,000 at $20k. 200x leverage, 600+ perpetuals, deep liquidity.