Bitcoin value dropped to ranges on Thursday that positioned it beneath the “Fireplace Sale!” band on the Bitcoin Rainbow Chart — a depth not reached for the reason that catastrophic FTX trade collapse in November 2022 — because the Concern and Greed Index registered a studying of 12 out of 100, deep in “Excessive Concern” territory.
Bitcoin value opened at present close to $63,500 after sliding beneath $62,000 final night time. That places BTC beneath even essentially the most discounted valuation band on the Bitcoin Rainbow Chart — a degree the mannequin traditionally flags as a uncommon and excessive shopping for sign.
The Bitcoin Rainbow Chart is considerably of a logarithmic progress curve overlaid with color-coded sentiment bands. The deepest band — labeled “Principally a Fireplace Sale!” — represents the bottom tier of the mannequin’s projected truthful worth vary. When Bitcoin trades beneath it, the asset sits exterior the historic channel that has contained BTC’s long-term value habits.
The final confirmed breach of the “Fireplace Sale!” ground occurred in the course of the FTX trade collapse in November 2022, when Sam Bankman-Fried’s crypto empire imploded and BTC cratered below pressured promoting stress throughout the market. That occasion stays one of the vital extreme liquidity crises in crypto historical past.
Per Bitcoin Journal Professional knowledge from March 2026, Bitcoin value had already begun testing beneath the “Fireplace Sale!” zone — described on the time as “its first drop into this space for the reason that FTX-induced crash”.
The renewed descent on June 4 deepens that breach, with the coin shedding floor for the second consecutive week.
Bitcoin value and market in ‘Excessive Concern’
The Concern and Greed Index, which runs on a scale of 0 to 100, registered 12 on Thursday — inserting the market squarely in “Excessive Concern”. The index aggregates volatility, market momentum, social sentiment, and derivatives knowledge right into a single rating.
A studying beneath 25 indicators excessive concern, a situation that, by the index’s personal framework, has traditionally preceded value restoration intervals.
February 2026 noticed the index contact an all-time low of 5, pushed by a 52% drawdown from Bitcoin value’s peak of $126,000. Thursday’s studying of 12 sits simply above that nadir, as Bitcoin value continues its slide from cycle highs.
On X at present, Technique’s Michael Saylor argued the sell-off displays institutional capital rotating into AI infrastructure somewhat than a deterioration in Bitcoin’s fundamentals. The decline could have been compounded by considerations over Technique promoting 32 BTC to fund preferred-share dividends — its first bitcoin sale since 2022 — regardless of the corporate lately lowering debt by repurchasing $1.5 billion of convertible notes at a reduction.
