Bitcoin (BTC) price has dropped under ‘Fire Sale!’ zone on the Rainbow Chart, its first drop in the region since FTX images– to impress at the end of 2022.
This coin fell under the ‘Fire Sale!’ part of the popular trend-tracking tool and long-term price recommendations as of March 31, which indicate that it is a very strong sell. Therefore, the price of Bitcoin would have already reached its 2025/2026 market or be very close to the bottom.
Almost 23 months after Bitcoin’s fourth decline, a return to this area could be an opportunity to buy on the big dip. If history repeats itself in 2026, the price of BTC could prepare for a new bull market. Also, the price of Bitcoin has remained under the ‘BUY!’ since dropping below $60,000 earlier this year.
Why is Bitcoin price trading under ‘Fire Sale!’ group?
The main reason Bitcoin price fell under ‘Fire Sale!’ zone during the reporting period is rising due to the pressure of the trade unions. For example, Mara Holdings (NASDAQ: MARA) recently sold 15,133 BTC for $1 billion, according to Finbold. report.
On the demand side, Strategy Inc. (MSTR) ended its 13-week Bitcoin buying streak by not announcing any purchases on Monday. This indicates a potential stoppage in one of the market’s established buyers. While it’s not a fast sell, it does remove a persistent catalyst that has been contributing to the price.
Greater economic uncertainty, fueled by political conflicts in the Middle East, has weighed on Bitcoin recently, as the currency is considered a risky asset by many institutional investors.
Is the BTC bear down?
As Bitcoin trades during the ‘Fire Sale!’ zone of about $67,023 during the reporting period, the probability that the surrounding area will be established has increased significantly. Also, economists plan recovery in the second quarter of 2026, citing possible changes in the US economy and Bitcoin’s history to recover significantly from the Rainbow Chart decline.
However, from a technical point of view, the price of BTC may fall after the 50 and 200 day Simple Moving Averages (SMAs) recorded a death cross on the three-day chart, according to analysis shared by business expert Ali Martinez. In fact, this is a historical symbol that, in previous lines, preceded other changes.
