The Bitcoin Rainbow Chart forecasts a broad and well-defined price spectrum for BTC as we near January 1, 2026.
This prediction emerges amid renewed downward pressure on Bitcoin, which recently dropped below the $90,000 threshold.
At the time of writing, Bitcoin was trading at approximately $89,257, marking a decline of over 1% in the last 24 hours. Over the past week, however, it has seen a modest increase of less than 1%.
The Rainbow Chart employs a logarithmic growth framework to assess Bitcoin’s price within color-coded bands that represent historical market sentiment extremes and cycle phases.
Forecasting Bitcoin’s Price
By January 1, 2026, BTC is positioned in the lower-middle valuation segments on this chart. This placement indicates that it is neither significantly overpriced nor deeply undervalued at that point in time.
The chart uses a logarithmic scale to plot prices and fits them along a long-term regression curve driven by adoption trends rather than short-term fluctuations. Each colored band corresponds to deviations from this trend line and offers context based on previous market cycles. Notably, this model does not pinpoint exact highs or lows but instead highlights probable valuation ranges grounded in historical patterns.
For early 2026 projections specifically, Bitcoin’s price could fall within what is labeled as the ‘Basically a Fire Sale’ zone—ranging roughly between $39,700 and $51,980—a range historically linked with significant undervaluation during late bear markets.
Sitting above that is the ‘BUY!’ zone spanning about $51,980 to $70,125; this area often signals strong opportunities for long-term accumulation. The ‘Accumulate’ band extends from around $70,125 up to approximately $90,650—close to where Bitcoin currently trades—indicating fair value relative to its broader growth trajectory.
The light green segment called ‘Still Cheap’ covers prices between roughly $90,650 and $117,105, suggesting moderate upside potential if adoption continues steadily upward. Above lies the ‘HODL!’ range—from about $117,105 up to around $153,445—which typically corresponds with robust bullish momentum absent excessive speculation.
Higher still is the ‘Is this a bubble?’ band spanning approximately from $153,445 through $195,567, a region where prices have historically begun detaching from their long-term averages.
The ‘FOMO intensifies’ zone runs roughly between $195,567 and $250,745, suggesting elevated speculative activity.
Beyond these levels are two critical zones: ‘Sell...,’ ranging from about $250.,,,;;;'sell seriously', extending up towards nearly $,ņ,;589,’and then finally,the 'Maximum Bubble Territory' stretching all way up close $,439,;404.This uppermost region has traditionally marked major peak cycles.
Bitcoin’s Optimal Price Range for Early 2026
Considering its current value near $,89200,the Rainbow Chart suggests BTC will most likely trade somewhere between $,90000,and $,117000 under neutral market conditions by January first ,2026 .If bullish momentum picks up ,a surge toward nearly one hundred fifty three thousand dollars ($ ;153 ,000) could also be possible .
Conversely ,even if there were substantial downside breaks below trend lines ,the model still predicts structural support well above fifty thousand dollars ($ ;50 ,000) over longer horizons .
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