$BTC has entered the purple "Bitcoin is dead" zone on the Rainbow Chart — historically a contrarian accumulation signal, not a literal end.
Context from Past Cycles:
Halving cycles often include a -50% “cleansing drop”
Shakes out weak hands, resets sentiment
Purple zone = late-stage fear before renewed momentum
What's Different Now:
First major pullback since 2024 ETF launch
Many institutional buyers are now underwater
Selling pressure concentrated in NY trading hours
Slow decline (~120 days) suggests belief erosion, not panic
Historical Perspective:
If past patterns hold, macro bottom could be $20K–$35K. This tests conviction among new entrants while OGs redistribute near cycle lows.
Bottom Line:
Bitcoin is doing what it always does — testing patience, liquidating leverage, and separating tourists from long-term believers. The log chart suggests this is noise in a larger bullish structure.
Timeframe determines perception. Are you accumulating in the “dead” zone?
