Bitcoin’s Break Below Rainbow Chart Floor Sparks Analyst Debate

Created by Reddit user Azop in 2014, the Rainbow Chart uses a logarithmic growth curve to divide Bitcoin prices into nine sentiment bands. The market has long used it to track bull and bear cycles of roughly four years. With U.S. spot ETFs, institutional balance sheets and macro capital flows now driving prices, the latest breach of the chart’s floor has become a key test of whether the old model remains valid.

On June 24, 2026, Bitcoin fell to about $62,500, roughly 50% below its October 2025 all-time high of $126,000. It entered the original chart’s “Bitcoin is dead” zone for only the second time in history. XYO co-founder Markus Levin said the model was no longer valid, while Bitget’s Ryan Lee said it should be used only as a sentiment gauge, not as a forecasting tool.