Bitcoin just broke below the floor of its famous Rainbow Chart into the ‘BTC is dead’ zone

Bitcoin has dropped about 50% from recent highs and slipped beneath the lower bound of the popular Rainbow Chart, entering its historically labeled "BTC is dead" zone. While the Rainbow Chart is a symbolic, non‑scientific sentiment overlay, the breach reflects elevated negative market sentiment and raises the risk of further capitulation and volatility. Traders face increased short‑term downside and liquidity risk, while long‑term holders may view the decline as a potential accumulation window if on‑chain fundamentals hold.