"The Bitcoin Rainbow Chart is a long‑term logarithmic valuation tool and it overlays price against a spectrum of colored bands, historically interpreted as oversold, fairly valued, or overbought. After an extended drawdown from cycle highs, Bitcoin's price now sits in one of the lower bands traditionally associated with deep undervaluation - colloquially referenced as "fire sale" territory. At the time of writing, BTC is struggling at the $83,000 level, after months of repeated sell-offs."
"A multibillion-dollar cascade wiped out leveraged positions, with BTC alone accounting for close to $960 million in forced exits in a single session, according to BM data. BTC plunged to lows around $81,000 last evening, dropping roughly 10% from 48-hour highs above $90,000 amid macro uncertainty and fragile market structure, according to Bitcoin Magazine Pro data. The sharp reversal followed the Federal Reserve meeting, where Powell highlighted labor market resilience without signaling urgent policy easing, turning the event into a "sell the news" moment."
The Bitcoin Rainbow Chart places BTC in lower logarithmic valuation bands labeled deep undervaluation or "fire sale." BTC has declined about 30% since early October 2025 and is trading near $83,000, dipping into the $80,000s. A multibillion‑dollar cascade forced nearly $960 million of Bitcoin liquidations in a single session. BTC fell to about $81,000, a roughly 10% drop from 48‑hour highs above $90,000 amid macro uncertainty and fragile market structure. The reversal followed a Federal Reserve meeting where Powell emphasized labor market resilience without signaling urgent easing. BTC moved below the 100‑week moving average near $85,000, suggesting sellers control price, and traders are eyeing $75,000 as the next key support. The White House will convene banking and crypto executives next week to discuss reviving stalled U.S. crypto legislation.
Read at Bitcoin Magazine
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