Key Facts

• Bitcoin has fallen below the lowest band of the popular Bitcoin Rainbow Chart for the second time in its history, dropping into the original model's "Bitcoin Is Dead" zone around $62,500, a level that has historically signaled extreme pessimism rather than a prediction about bitcoin's future.
• The decline has pushed BTC below the floor of the modern nine-band Rainbow Chart and into the original model's purple "Bitcoin Is Dead" zone, with bitcoin trading near $62,500, down roughly 50% from its October 2025 all-time high of $126,000.
• Analysts disagreed on what the breach means for bitcoin and the Rainbow Chart itself, with some viewing it as a key buying opportunity and others seeing it as a sign that the chart is becoming less useful as institutional investors, ETFs, and macroeconomic forces play a larger role in the market.
• The Rainbow Chart was developed by Reddit user Azop in 2014 and uses a logarithmic growth curve to track bitcoin's long-term price trend and places the asset into colored bands that correspond with different stages of market sentiment.
• 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.