Bitcoin’s price has historically reached the “fire sale” zone, indicating an extremely low valuation according to the latest Bitcoin Rainbow Chart data. This chart segments price levels into colored bands that typically signal overbought, fair value, or oversold conditions. Recently, Bitcoin experienced a sharp decline, entering the chart’s lower bands that denote deep undervaluation. Currently, Bitcoin is trading near $83,000, reflecting a nearly 30% decrease since October 2025. The market also saw substantial liquidations, including forced exits amounting to approximately $960 million in a single session.
This downturn followed the U.S. Federal Reserve’s recent meeting, where officials did not indicate any immediate policy easing. The market interpreted this as a “sell the news” event, leading to price drops across Bitcoin and other assets. Additionally, the White House plans to meet with banking and crypto industry representatives next week to reinvigorate cryptocurrency regulations in the United States.
Traders are now focusing on the $75,000 level as the next critical support, while the 200-week moving average near $58,000 could trigger further bearish momentum. Global market volatility, including a $357 billion drop in Microsoft shares and concerns over artificial intelligence investments, has made investors cautious, resulting in $1.6 billion in long crypto positions being liquidated. Meanwhile, gold and silver prices have also fallen significantly, signaling a broader correction in global financial markets. These combined factors have pushed Bitcoin to an extremely low price zone, from which the market may either stabilize or face further declines.
Source: bitcoinmagazine
