Bitcoin price is dead. Again. At least that is what the iconic Rainbow Chart is signaling as
Bitcoin
7.30%
drifts near $72,000 in early February 2026, below its recent peak of $78,725.
Crypto Twitter sentiment now rivals the despair seen after the FTX collapse in 2022, with many arguing this halving cycle has already failed.
The rainbow chart has been getting bent more and more each year. If we were still using the OG chart from 2016 the price would be miles below the actual rainbow; it originally had BTC into the $1,000,000+ range by now.
Thanks, rainbowman, I accumulated lots above 100k because this chart told me to. Now what? They should post a rainbow touching the Earth.
The Rainbow Chart tracks Bitcoin against emotional bands from “Bitcoin is dead” to “Bubble territory.” The chart has logged 457 Bitcoin obituaries since 2010. It’s not predictive, it’s psychological. Purple and blue mean capitulation. Orange and red mean mania.
Here are the two other factors why many say this bear market is only getting started:
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1. Clarity Act Emergency Talks Collapse With Accusations Against Trump and the UAE
Crypto policy just became a criminal investigation.
New York Senator Chris Murphy accused Trump of “potentially criminal conduct” with the UAE pouring money into Trump family crypto ventures via World Liberty Financial, then overseeing immediate approval of crypto legislation.
According to reporting by The Wall Street Journal, roughly $187 Mn was directed to Trump family entities and another $31 Mn to the family of special envoy Steve Witkoff.
Murphy cited a $500 Mn transaction in which UAE-backed Aryam Investment acquired 49% of World Liberty Financial four days before Trump took office, framing the sequence as a textbook quid pro quo.
“That is corruption. Those are the elements of a bribe. This is potentially criminal conduct.” -Chris Murphy, U.S. Senator, Senate Floor Remarks
Crypto Twitter is debating if the democrats don’t hate crypto more than Trump; he is just trying to cash in on it as long as he can. He was never really pro crypto.
The accusations surfaced as the White House hosted a closed-door crypto summit with Ripple, Coinbase, Kraken, Tether, and Circle, attempting to hammer out stablecoin yield provisions tied to the CLARITY Act.
No agreement was reached, but a February deadline now looms.
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2. Are The Bears Right? Crypto Supercyclists Down Hard in 2026
Some traders see more downside. Crypto trader Rektmando argues Bitcoin lacks structural support until the mid-to-low $60,000 range, with others pointing to $67,000 as a possible cycle floor.
Pressure is not isolated to Bitcoin. Ethereum has fallen sharply from above $3,000, with a large leveraged position reportedly facing liquidation near $1,800.
Veteran investor Michael Burry added fuel by sharing a logarithmic Bitcoin chart suggesting a topping pattern similar to prior cycle peaks.
$BTC Patterns pic.twitter.com/Ax595mNXrD
— Cassandra Unchained (@michaeljburry) February 4, 2026
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Noah’s Ark-Type Washout Coming? What the Data Actually Says
Bitcoin dropped 17.5% to 20% year-to-date by early February 2026—from $87,500 to the low $70,000s. Rising Treasury yields crushed risk assets across the board.
Meanwhile, supercyclists like Raoul Pal, Arthur Hayes, and Tom Lee keep calling for new all-time highs even after they’ve been dead wrong. The $67,000-$70,000 zone is critical. Break below that and $60,000 comes fast.
Until the hopium dies, the fall continues. Just remember, after the flood is the rainbow.
EXPLORE: Ethereum Is Dying, Or Is This the Biggest Buy Signal of the Decade?
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Key Takeaways
-
Bitcoin price is dead. Again. At least that is what the iconic Rainbow Chart is signaling as the price spirals around $72K -
Meanwhile, supercyclists like Raoul Pal, Arthur Hayes, and Tom Lee keep calling for new all-time highs even after they’ve been dead wrong.
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