Bitcoin has fallen below the lowest band of the popular Bitcoin Rainbow Chart for the second time in its history, a valuation model that has tracked BTC’s long-term price cycles for more than a decade.
Some of bitcoin’s most fervent holders believe the chart is signaling a key buying opportunity. CryptoRover drew comparisons on X Wednesday with the last time it was in this zone of the rainbow in 2022, at $15,000 before a cycle bottom.
Bitcoin trades near $62,500, down roughly 50% from its October 2025 all-time high of $126,000. The decline has pushed BTC below the floor of the modern nine-band Rainbow Chart and into the original model’s purple «Bitcoin Is Dead» zone, a level that has historically signaled extreme pessimism rather than a prediction about bitcoin’s future.
The move has sparked debate among analysts over whether bitcoin is deeply undervalued or whether the Rainbow Chart itself is becoming less useful as institutional investors, exchange-traded funds (ETFs) and macroeconomic forces play a larger role in the market.
