BTC Enters Fire Sale Zone as Cycle Nears Previous Bottoms

Bitcoin's valuation has hit rock bottom according to the Rainbow model, placing it in the 'fire sale' zone. This model categorizes prices based on their relationship with long-term growth trends, and BTC is now trading at 66% below its model price of $186,700.

The volatility-adjusted Z-Score has also fallen to -2.293, a level not seen since 2022. Historically, such extremes have aligned with accumulation periods, but they do not guarantee the final bottom.

Looking at cycle duration, the current Bitcoin cycle is nearing its previous bottoming windows, with roughly 69-73 days remaining until it matches the cycle lengths of the past two bottoms.