Bitcoin slips into the Rainbow Chart's basement, and the chart might be the one that's done 🌈

Bitcoin has fallen below the lowest band of the long-running Bitcoin Rainbow Chart for the second time in its history, dropping into the original model's purple "Bitcoin Is Dead" zone. BTC trades near $62,500, down roughly 50% from its October 2025 all-time high of $126,000, a move that has pushed the asset beneath the floor of the modern nine-band version of the chart and into a level that has historically signaled extreme pessimism.

The Rainbow Chart was developed by Reddit user Azop in 2014. It uses a logarithmic growth curve to track bitcoin's long-term price trend and assigns colored bands to different stages of market sentiment. Crypto analyst CryptoRover drew comparisons on X Wednesday with the last time price entered this zone, in 2022 at around $15,000, before that cycle's bottom. The breach has split analysts over whether bitcoin is deeply undervalued or whether the decade-old model itself is losing relevance as exchange-traded funds, institutional investors and broader macroeconomic forces reshape the market.

"The first time price breaks below a band that has held for over a decade indicates that there's a structural shift in the model," Markus Levin, co-founder of XYO, told CoinDesk. "I do not read this as bitcoin being dead, I read this as the Rainbow Chart being dead, and that is actually a bullish statement about how far the asset has matured." Bitget chief analyst Ryan Lee said the chart remains a useful sentiment reference even as its predictive value has weakened, with many market participants now treating it and similar tools as gauges of mood rather than forecasts of price.

The article was reported by Olivier Acuna and edited by Oliver Knight, and was originally published on June 24, 2026.