Bitcoin price fell to Thursday levels putting it under “Sell on the cheap!” Band on Bitcoin Rainbow table – A depth not reached since the catastrophic FTX crash in November 2022 – with the Fear and Greed Index reading 12 out of 100, deep into “extreme fear” territory.
Bitcoin price opened today near $63,500 after falling below $62,000 last night. This puts BTC below the most discounted valuation range on the Bitcoin Rainbow Chart – a level that the model has historically flagged as a rare and extreme buy signal.
The Bitcoin Rainbow chart is somewhat of a logarithmic growth curve covered in color-coded sentiment bands. The band’s deepest – titled “Basically a Fire Sale!” — Represents the lower level of the model’s expected fair value range. When Bitcoin is trading below it, the asset is outside the historical channel that contains Bitcoin’s long-term price behavior.
The latest confirmed violation of the “Fire Sale”! This happened during the FTX exchange collapse in November 2022, when Sam Bankman-Fried’s cryptocurrency empire… exploded And BTC collapsed under forced selling pressure throughout the market. This event remains one of the most serious liquidity crises in the history of cryptocurrencies.
per Bitcoin Pro Magazine According to data as of March 2026, Bitcoin price has already started testing under “Sell on the cheap!” Area – It was described at the time as “their first decline in this area since the FTX-induced collapse.”
A renewed decline on June 4 deepened this breakout, with the currency falling for the second week in a row.
Bitcoin price and market are in a state of “extreme fear”
An indicator of fear and greed runs On a scale of 0 to 100, it scored a 12 on Thursday — putting the market directly into “extreme fear” mode. The index combines volatility, market momentum, social sentiment and derivatives data into a single score.
A reading below 25 indicates extreme fear, a condition that, according to the indicator’s own framework, has historically preceded periods of price recovery.
February 2026 saw the index reach an all-time low of 5, driven by a 52% decline from Bitcoin’s peak price of $126,000. Thursday’s reading of 12 is just above this rock bottom, as is the price of Bitcoin It continues to slide One of the highest levels of the course.
On X Today, Strategy.com’s Michael Saylor Argue The sell-off reflects institutional capital rotating into AI infrastructure rather than a deterioration in Bitcoin fundamentals. The decline may have been exacerbated by concerns about the strategy selling 32 bitcoins to fund a preferred stock dividend — the first bitcoin sale since 2022 — even though the company recently reduced debt by buying back $1.5 billion of convertible securities at a discount.
