Bitcoin rainbow chart flash ‘fire sale’ – Should you jump in?

Bitcoin’s current stage of $95k is a superb shopping for zone for mid-term buyers.

In keeping with the Bitcoin rainbow chart, a mannequin used to determine key inflection factors and valuation-based market cyclical patterns, a ‘fireplace sale’ for the asset was flashed. 

The final time the sign was flagged was in H2 2024 and Q1 2025, Bitcoin [BTC] rebounded and cooled off after surging to the ‘accumulate’ zones. 

Supply: Blockchain Heart

As of writing, the ‘accumulate’ zone was round $150K-$160K worth space. That will translate to a possible 60% upside if previous tendencies repeat. 

Nonetheless, if the 4-year cycle isn’t lifeless as some declare, and historical past repeats itself, then a greater low cost window may very well be possible if BTC slips to $65K-$75K space. It is a “BTC is lifeless” zone that marked cycle lows of previous bear markets. 

Is a mid-term reduction seemingly?

The constructive outlook within the quick to medium time period was additionally strengthened by the decline in promoting strain on the derivatives market. In keeping with CryptoQuant analyst DarkFost, the strain within the Futures market had dropped from practically $500 million to $51 million – A 90% drop in promoting. 

He added, 

“If Internet Taker Quantity had been to show constructive once more, it might clearly ignite the fuse for a bullish reversal.”

Supply: CryptoQuant

In different phrases, the present BTC worth could be a terrific shopping for alternative if the web promoting had been to flip to internet shopping for once more. 

Bitcoin’s total demand continues to be low

In the meantime, the spot market has additionally proven slight enchancment. 

The demand from company treasuries has bounced again, led by Technique. Public corporations have added roughly 43,000 BTC per thirty days, or 260,000 BTC, over the previous six months. 

Supply: Glassnode 

Nonetheless, the present worth consolidation inside $85K-$95K vary has absorbed vital distribution for OG Bitcoiners and ETFs in late 2025. In actual fact, in early 2026, the U.S. Spot BTC ETF inflows have posted combined outcomes. 

As of press time, the general demand for BTC, factoring in ETFs and company treasury corporations, remained low, reinforcing little confidence amongst bulls. 

The 30-day Common Obvious BTC demand has declined from over 800K BTC in December to 284K and was nonetheless dropping at press time. Until the development reverts, the current try to interrupt out above $95k might fail to materialize. 

Supply: CryptoQuant 

General, the BTC rainbow chart instructed that the present stage or an additional dip to $65k-$75k would nonetheless be a reduced shopping for window. 

Ultimate Ideas 

• The Bitcoin rainbow chart flagged a ‘fireplace sale’ window on the present worth of $95k. 
• Nonetheless, BTC demand was but to totally get better from the late 2025 sell-off regardless of some reduction indicators.