Bitcoin has fallen below the lowest range of the Bitcoin Rainbow Chart, marking only the second time in history it has entered the purple zone. Some holders are comparing the current situation to the 2022 decline when Bitcoin reached around $15,000, forming a cycle low. Markus Levin, co-founder of XYO, stated that this is the first time the price has broken below the range it has maintained for over a decade, rendering the Rainbow Chart ineffective. Emad Shahin, COO of Ethra, said the Rainbow Chart is an indicator of sentiment, not a predictive tool. Mark Zalan, CEO of GoMining, noted that this zone represents extreme fear and undervaluation, often followed by a rebound. Lee stated that Bitcoin’s current position at the lower end of the Rainbow Chart indicates weakening market sentiment; if risk appetite deteriorates further, Bitcoin cannot be ruled out from dropping toward the lower end of the $50,000 range.
Bitcoin Drops Below Rainbow Chart Bottom; Analysts Disagree on Model Validity
AiCoinShare
Summary
Today’s Bitcoin price has fallen below the bottom of the Bitcoin chart’s Rainbow Chart, entering the purple zone for the second time in history. Some investors compare this to the 2022 low near $15,000. Markus Levin of XYO said this move invalidates the chart’s long-term range. Emad Shahin of Ethra called it an emotional, not predictive, tool. Mark Zalan of GoMining views it as a sign of fear and undervaluation. Lee noted that today’s Bitcoin price reflects weak sentiment, with potential for further decline toward $50,000.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.