Bitcoin Rainbow Chart Signals Potential Buying Opportunity – Should You Invest Now?

Bitcoin rainbow chart

Bitcoin's recent price of $95,000 presents an attractive opportunity for mid-term investors. According to the Bitcoin rainbow chart, a tool used to pinpoint significant market cycles and valuation trends, this moment is highlighted as a 'fire sale' for the cryptocurrency.

The last time such a signal was identified was during the latter half of 2024 and the first quarter of 2025, when Bitcoin (BTC) rebounded vigorously before settling into ‘accumulate’ zones.

Bitcoin rainbow chart

Source: Blockchain Center

Currently, the ‘accumulate’ zone is estimated to be between $150,000 and $160,000, which indicates a potential 60% increase if historical trends hold true. Some believe that if the four-year cycle remains active, Bitcoin could drop to a more favorable price range of $65,000 to $75,000. This area is considered the “BTC is dead” zone, marking previous bear market lows.

Is a Mid-Term Reversal Coming?

The optimistic perspective for the short to mid-term is further bolstered by decreasing selling pressure in the derivatives market. According to CryptoQuant analyst DarkFost, the selling pressure in the Futures market plummeted from nearly $500 million to $51 million, indicating a remarkable 90% decline in selling activity.

He remarked, “If Net Taker Volume turns positive once again, it could spark a bullish reversal.”

Bitcoin rainbow chart

Source: CryptoQuant

In essence, the current Bitcoin price represents a significant buying opportunity, especially if the net selling begins to shift towards net buying.

Current Demand for Bitcoin Remains Low

On another note, the spot market has shown minor signs of improvement. Demand from corporate treasuries is recovering, with public firms purchasing approximately 43,000 BTC monthly, totaling 260,000 BTC over the past six months.

Bitcoin rainbow chart

Source: Glassnode

However, the current price stabilization between $85,000 and $95,000 reflects substantial selling activity from long-term Bitcoin holders and ETFs late in 2025. In early 2026, the inflows for the U.S. Spot BTC ETF exhibited mixed performance.

As of now, overall Bitcoin demand, considering both ETFs and corporate treasury purchases, continues to be low, casting doubt among bullish investors. The 30-day average apparent BTC demand has decreased from over 800,000 BTC in December to 284,000, with no signs of recovery at this point. Unless this trend changes, the recent efforts to push past the $95,000 mark could falter.

Bitcoin rainbow chart

Source: CryptoQuant

Overall, the Bitcoin rainbow chart indicates that the present price or a further dip to the $65,000 to $75,000 range would still present a discounted buying opportunity.

Conclusion

As Bitcoin continues to navigate evolving market conditions, potential investors should weigh the observations from the rainbow chart along with general market sentiment before making any decisions.