{"id":50216,"date":"2026-01-30T12:26:26","date_gmt":"2026-01-30T17:26:26","guid":{"rendered":"https:\/\/bitcoinmagazine.com\/?p=50216"},"modified":"2026-01-30T12:26:44","modified_gmt":"2026-01-30T17:26:44","slug":"bitcoin-rainbow-chart-fire-sale","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/bitcoin-rainbow-chart-fire-sale","title":{"rendered":"Bitcoin Rainbow Chart Signals \u2018Fire Sale\u2019 Zone as BTC Enters Undervalued Territory"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>Bitcoin\u2019s price has plunged into zones historically tagged by long\u2011term valuation models as \u201cfire sale\u201d levels, <a href=\"https:\/\/www.bitcoinmagazinepro.com\/charts\/bitcoin-rainbow-chart\/\" target=\"_blank\" rel=\"noopener\">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\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>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 <a href=\"https:\/\/bitcoinmagazine.com\/markets\/bitcoin-price-skyrockets-to-all-time-high-of-125750-what-comes-next\">since early October 2025<\/a>, trading as low as the $80,000s \u2014 triggering widespread leveraged liquidations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">JUST IN: Bitcoin has now entered into &quot;Fire Sale!&quot; territory \ud83d\udc40<br><br>Buy the dip! \ud83d\ude4c <a href=\"https:\/\/t.co\/pe1dIXIdFM\">pic.twitter.com\/pe1dIXIdFM<\/a><\/p>&mdash; Bitcoin Magazine (@BitcoinMagazine) <a href=\"https:\/\/twitter.com\/BitcoinMagazine\/status\/2017268157338034563?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 30, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>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\n\n\n<p>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\n\n\n<p>The sharp reversal followed the <a href=\"https:\/\/bitcoinmagazine.com\/news\/trump-names-kevin-warsh-as-pick-for-fed\">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\n\n\n<p>Meanwhile, next week the White House will <a href=\"https:\/\/bitcoinmagazine.com\/politics\/white-house-to-host-crypto-executives\">convene<\/a> banking and crypto executives to discuss reviving stalled U.S. crypto legislation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is this sale the bottom for bitcoin?<\/h2>\n\n\n\n<p>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\n\n\n<p>Traders <a href=\"https:\/\/bitcoinmagazine.com\/markets\/bitcoin-drops-below-87000-as-bears-target-84000-support-break\">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.&nbsp;<\/p>\n\n\n\n<p>Broader market turmoil, including a massive $357 billion <a href=\"https:\/\/seekingalpha.com\/article\/4863909-microsoft-the-market-has-lost-its-mind\" target=\"_blank\" rel=\"noopener\">drop<\/a> in Microsoft\u2019s value and concerns over AI investments, has spooked broader investors and liquidated $1.6 billion in crypto long positions.&nbsp;<\/p>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>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","protected":false},"excerpt":{"rendered":"<p>Bitcoin has dropped into historically \u201cfire sale\u201d levels on the Bitcoin Rainbow Chart, signaling deep undervaluation.<\/p>\n","protected":false},"author":3817,"featured_media":50218,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[76,85,5454],"class_list":{"0":"post-50216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bitcoin","9":"tag-bitcoin-magazine-pro","10":"tag-markets"},"author_data":{"id":3817,"name":"Micah Zimmerman","nicename":"micahzimmerman","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/11\/Micah_Zimmerman_Author_Image.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2026\/01\/Bitcoin-Rainbow-Chart-Signals-\u2018Fire-Sale-Zone-as-BTC-Enters-Undervalued-Territory.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/50216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3817"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=50216"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/50216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/50218"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=50216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=50216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=50216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}