Bitcoin [BTC] has given June a remarkable start. Within five days the price has fallen by 14.4%. The first three days of the month saw cumulative outflows of $1.399 billion from Spot Exchange Traded Funds (ETFs).
In a post on X, Ali Martinez used Glassnode data to show that Bitcoin had lost control of the $72.4k level. This level was one of the price ranges derived from the MVRV ratio. Specifically, this was -0.5σ, or half a standard deviation below the average of $94.1k.
The next major support zones are around $54,000 and $50,000, which matches the $51,000 forecast that AMBCrypto recently made.
The continued pressure on Bitcoin has led to massive liquidations. The $60,000 support, based on the lows of the February crash, was about to be tested and could lead to a capitulation.
The Bitcoin Rainbow Chart Shows Gloom at its Peak
Popular crypto commentary Altcoin Daily noted that Bitcoin’s price has once again fallen below the Rainbow Chart.
This tool is more of a fun chart that uses logarithmic regression to chart price trends than a metric that can be used to make serious financial decisions.
In September 2022, Bitcoin dipped below the lower limits of the Rainbow Chart. It remained there for just over a year before the bull running resumed. More recently, according to the chart above, BTC lost the rainbow in February 2026.
It should be noted that the Rainbow Chart was not created to take evolving cycles into account. As crypto and Bitcoin matured as a market, the volatility in their genesis has decreased.
The peak of each cycle has not expanded further than the peak that preceded it, in percentage terms.
This is to be expected as an asset’s market capitalization grows. BTC has also seen many developments, such as spot ETFs and institutional holdings. Saylor’s long-term bet involved raising debt to buy BTC, effectively turning MSTR into a leveraged Bitcoin ETF.
Investors should remain agile in their analyzes and appreciate the Bitcoin Rainbow Chart for what it is: a projection, not an accurate forecasting model.
Final summary
- Bitcoin has fallen below the lower bands of the Rainbow Chart, much like it did during the 2022 bear market.
- The on-chain metrics and market sentiment suggested that a drop towards $51,000 later in 2026 is possible.