Bitcoin’s recent crash began with a violent rejection at $82,000 that drove it south to $59,000 on Friday, which became its lowest price tag since before the US presidential elections in November 2024.
Following such a painful decline, the asset has dropped into a critical zone where long-term indicators and historical patterns begin to converge. Perhaps that’s why many analysts have started to debate whether the bottom is just around the corner or another leg down could be in the making.
The Rainbow Chart
Popular analyst Crypto Rover noted recently that BTC had declined below the ‘rainbow chart’ (seen in the embedded video below), which was just the second such occurrence in its recent history. The reason for this long-term valuation model’s rarity is that it comes during extreme market conditions.
The last time it happened, BTC dumped toward $15,000 during the 2022 bear market. For many long-term bitcoin holders, it signals that the cryptocurrency is entering deeply undervalued territory; hence, it could be close to the bottom. For now, though, the asset remains firmly below it even after managing to rebound from the $59,000 low.
$BTC just fell below the rainbow chart.
Historically, this has happened 2 times.
• 2022: $15,500
• 2026: $63,000Most Bitcoin OG’s remember this. pic.twitter.com/SkOQrIDXBT
— Crypto Rover (@cryptorover) June 5, 2026
Another key level now in focus is the 200-week exponential moving average (EMA), which was brought up by fellow analyst CRYPTOWZRD. They noted that it has historically served as a reliable support during bear markets, and in most previous cycles BTC has bottomed either at or very close to it.
Bitcoin is currently testing it, and if it manages to hold above it and reclaim momentum, it could strengthen the case for a bottom forming in the low-$60,000 range. A clean breakdown, though, would likely open the door for deeper losses and extend the correction phase.
Maybe Not Complete?
Rekt Capital compared the current bear phase to the 2022 landscape and concluded that there’s a major discrepancy in the divergences from the previous all-time highs. In 2022, BTC deviated 22% below its 2017 all-time high, while it has not gone just 12% under the 2021 all-time high.
“Bitcoin is getting close to a bottom but it’s not there quite yet and there’s still time left,” the analyst concluded.
For now, the main signals remain mixed as long-term valuation models and key technical levels suggest BTC is getting close to a bottom, but it’s not necessarily there yet. As volatility remains elevated, the market seems to be entering a ‘make-or-break’ phase that could define the next major trend.
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