{"id":131252,"date":"2026-01-30T17:26:26","date_gmt":"2026-01-30T17:26:26","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=131252"},"modified":"2026-01-30T17:26:26","modified_gmt":"2026-01-30T17:26:26","slug":"bitcoin-rainbow-chart-signals-fire-sale-zone-as-btc-enters-undervalued-territory","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=131252","title":{"rendered":"Bitcoin Rainbow Chart Signals \u2018Fire Sale\u2019 Zone as BTC Enters Undervalued Territory"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Bitcoin Rainbow Chart Signals \u2018Fire Sale\u2019 Zone as BTC Enters Undervalued Territory<\/a><\/p>\n

<\/div>\n

Bitcoin\u2019s price has plunged into zones historically tagged by long\u2011term valuation models as \u201cfire sale\u201d levels, according to the latest<\/a> Bitcoin Rainbow Chart from Bitcoin Magazine Pro. The sentiment\u2011laden nomenclature \u2014 often shared jokingly in bitcoin circles \u2014 now has a more serious undertone amid one of the deepest corrective phases in recent cycle history.<\/p>\n

The Bitcoin Rainbow Chart is a long\u2011term logarithmic valuation tool and it overlays price against a spectrum of colored bands, historically interpreted as oversold, fairly valued, or overbought.\u00a0<\/p>\n

After an extended drawdown from cycle highs, Bitcoin\u2019s price now sits in one of the lower bands traditionally associated with deep undervaluation \u2014 colloquially referenced as \u201cfire sale\u201d territory.\u00a0<\/p>\n

At the time of writing, BTC is struggling at the $83,000 level, after months of repeated sell-offs. BTC has shed roughly 30% of its value since early October 2025<\/a>, trading as low as the $80,000s \u2014 triggering widespread leveraged liquidations.<\/p>\n

\n

JUST IN: Bitcoin has now entered into “Fire Sale!” territory <\/p>\n

Buy the dip! pic.twitter.com\/pe1dIXIdFM<\/a><\/p>\n

\u2014 Bitcoin Magazine (@BitcoinMagazine) January 30, 2026<\/a>\n<\/p><\/div>\n

A multibillion-dollar cascade wiped out leveraged positions, with BTC alone accounting for close to $960\u202fmillion in forced exits in a single session, according to BM data.<\/p>\n

BTC plunged to lows around $81,000 last evening, dropping roughly 10% from 48-hour highs above $90,000 amid macro uncertainty and fragile market structure, according to Bitcoin Magazine Pro data.\u00a0<\/p>\n

The sharp reversal followed the Federal Reserve<\/a> meeting, where Powell highlighted labor market resilience without signaling urgent policy easing, turning the event into a \u201csell the news\u201d moment for speculative assets.<\/p>\n

Meanwhile, next week the White House will convene<\/a> banking and crypto executives to discuss reviving stalled U.S. crypto legislation.<\/p>\n

Is this sale the bottom for bitcoin?<\/h2>\n

BTC has plunged below its two-month-long safety net at the 100-week moving average around $85,000, signaling sellers have taken control.\u00a0<\/p>\n

Traders are now eyeing<\/a> $75,000 as the next key support level, while a drop toward the 200-week average near $58,000 could trigger further losses.\u00a0<\/p>\n

Broader market turmoil, including a massive $357 billion drop<\/a> in Microsoft\u2019s value and concerns over AI investments, has spooked broader investors and liquidated $1.6 billion in crypto long positions.\u00a0<\/p>\n

Over the last two days, gold prices reversed sharply from record highs above $5,500, falling back below $5,000 at times as investors booked profits and reacted to a firmer U.S. dollar.\u00a0<\/p>\n

Silver plunged over 20% at times. The volatility in both metals highlights a broader market correction after historic gains, with sharp pullbacks testing the sustainability of the early\u2011year rally.<\/p>\n

This post Bitcoin Rainbow Chart Signals \u2018Fire Sale\u2019 Zone as BTC Enters Undervalued Territory<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Bitcoin Rainbow Chart Signals \u2018Fire Sale\u2019 Zone as BTC Enters Undervalued Territory Bitcoin\u2019s price has plunged into zones historically tagged by long\u2011term valuation models as \u201cfire sale\u201d levels, according to the latest Bitcoin Rainbow Chart from Bitcoin Magazine Pro. The sentiment\u2011laden nomenclature \u2014 often shared jokingly in bitcoin circles \u2014 now has a […]<\/p>\n","protected":false},"author":0,"featured_media":131253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-131252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/131252"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=131252"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/131252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/131253"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=131252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=131252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=131252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}