Bitcoin’s price has plunged into zones historically tagged by long‑term valuation models as “fire sale” levels, according to the latest Bitcoin Rainbow chart from Bitcoin Magazine Pro. The sentiment‑laden nomenclature — often shared jokingly in bitcoin circles — now has a more serious undertone amid one of the deepest corrective phases in recent cycle history.
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.
BTC has been struggling to maintain its $83,000 value after repeated sales. BTC’s value has dropped by around 30% since early October 2025, trading as low as the $80,000s — triggering widespread leveraged liquidations.
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.
Bitcoin Magazine Pro reported that BTC dropped to lows near $81,000 on Monday evening. The market was weakened by macro-uncertainty, and the fragile structure of the markets, causing a 10% drop from its 48-hour peak above $90,000.
After the sharp reverse, Federal Reserve Powell’s meeting turned into an event where he highlighted the labor market’s resilience, without indicating a need for urgent policy easement. “sell the news” The moment to invest in speculative assets
Next week, the White House is expected to host a White House event. convene Bankers and crypto executives discuss revitalising U.S. crypto laws.
What is this bitcoin sale?
BTC fell below its safety net for two months at the 100 week moving average of around $85,000. Sellers have now taken over.
Tradesmen are now eyeing $75,000. The 200-week median near $58,000 is the key level of support. A drop below this could lead to further losses.
Market turmoil to include a huge $357 billion drop Microsoft’s valuation and AI concerns have scared investors, causing them to liquidate $1.6 Billion in long crypto positions.
Gold prices have fallen sharply in the past two days from their record highs of above $5,500. They even fell below $5,000 on occasion as investors took profits and responded to an inflated dollar.
Silver dropped over 20% in some instances. The volatility in both metals highlights a broader market correction after historic gains, with sharp pullbacks testing the sustainability of the early‑year rally.
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Source: bitcoinmagazine.com
