Bitcoin falls below the bottom of the rainbow chart and enters the 'Bitcoin is dead' zone According to BlockBeats, on June 24th, Bitcoin fell below the lowest range of the long-term popular valuation model Bitcoin Rainbow Chart, marking the second time in history that it has fallen into the purple area marked as "Bitcoin is dead" in the original model. The Bitcoin Rainbow Chart was developed by Reddit user Azop in 2014, using a logarithmic growth curve to track the long-term price trend of Bitcoin and corresponding market sentiment stages through different color ranges. Some Bitcoin holders believe that the current drop into this region may represent a key buying opportunity, and compare it to the scenario of Bitcoin falling to around $15000 in 2022 and subsequently forming a cycle bottom. However, analysts have differing opinions on this signal. XYO co-founder Markus Levin stated that the price has fallen below a range that has persisted for over a decade for the first time, indicating a structural change in the model. He does not believe that Bitcoin is dead, but rather that the rainbow chart has become invalid. Ethra COO Emad Shahin stated that Rainbow Chart is more of an emotional indicator than a predictive tool. GoMining CEO Mark Zalan also stated that the 'Bitcoin is dead' region does not necessarily mean that Bitcoin is truly dead. This region has historically represented extreme panic and undervaluation, often followed by a recovery. As institutional investors, ETF fund flows, derivative activities, and macro factors gain greater weight in Bitcoin pricing, the effectiveness of relying solely on historical valuation models is declining. Lee stated that the current low position of Bitcoin on the rainbow chart indicates a weakening market sentiment, but it does not necessarily mean that there will be a significant new low; If risk appetite further deteriorates, Bitcoin still cannot rule out the possibility of falling towards the low range of $50000. [Original link]