Bitcoin Rainbow Chart Signals ‘Fire Sale’ Zone as BTC Enters Undervalued Territory

The Bitcoin Rainbow Chart, a long-term logarithmic valuation tool, now shows Bitcoin's price entering levels historically associated with deep undervaluation, colloquially termed the “fire sale” zone. This follows a deep corrective phase where BTC shed roughly 30% of its value since early October 2025, struggling around the $83,000 level and triggering widespread leveraged liquidations, including nearly $960 million in forced exits in one session. The sharp reversal followed a Federal Reserve meeting where policy easing was not signaled, leading to a “sell the news” event for speculative assets. Technically, BTC has fallen below its two-month safety net at the 100-week moving average near $85,000, with traders now watching $75,000 as the next support level. This market turmoil coincided with broader market corrections, including a massive drop in Microsoft's value and sharp pullbacks in gold and silver prices.

(Source：Bitcoin Magazine)