Bitcoin Price Plunges Below ‘Fire Sale’ Territory as Fear Index Reads 12 — Echoing the FTX CrashBitcoin price dropped to levels on Thursday that placed it below the “Fire Sale!” band on the Bitcoin Rainbow Chart — a depth not reached since the catastrophic FTX exchange collapse in November 2022 — as the Fear and Greed Index registered a reading of 12 out of 100, deep in “Extreme Fear” territory.
Bitcoin price opened today near $63,500 after sliding below $62,000 last night. That puts $BTC below even the most discounted valuation band on the Bitcoin Rainbow Chart — a level the model historically flags as a rare and extreme buying signal.
The Bitcoin Rainbow Chart is somewhat of a logarithmic growth curve overlaid with color-coded sentiment bands. The deepest band — labeled “Basically a Fire Sale!” — represents the lowest tier of the model’s projected fair value range. When Bitcoin trades beneath it, the asset sits outside the historical channel that has contained $BTC’s long-term price behavior.
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