The Bitcoin Rainbow Chart is providing a structured price forecast for BTC as the market heads towards January 1, 2026. This comes amidst renewed bearish pressure, with Bitcoin recently slipping below the $90,000 mark. Currently, Bitcoin is trading at $89,257, reflecting a decline of more than 1% over the past 24 hours, while its weekly performance shows a gain of less than 1%.
The Rainbow Chart employs a logarithmic growth model to assess Bitcoin“s price through various color-coded bands. These bands represent historical market sentiment, valuation extremes, and the positioning within market cycles. As of its January 1, 2026 projection, BTC is indicated to be in the lower-middle valuation zone, suggesting it is neither in an overheated state nor deeply undervalued.
This model fits Bitcoin“s price on a logarithmic scale to a long-term regression curve that is tied to adoption-driven growth, rather than short-term volatility. Each color band signifies a deviation from this trend, providing insights into past market cycles. The model does not attempt to predict exact market tops or bottoms, but rather highlights probabilistic valuation ranges based on historical behavior.
As per the Rainbow Chart”s estimation for January 1, 2026, Bitcoin“s price may fall within the “Basically a Fire Sale” band, which ranges from approximately $39,700 to $51,980. This range is historically associated with extreme undervaluation and late-stage bear-market conditions. Above this, the “BUY!” band spans from about $51,980 to $70,125, a zone that has frequently aligned with strong long-term accumulation opportunities.
The “Accumulate” band, which is situated between approximately $70,125 and $90,650, closely mirrors Bitcoin“s current trading price, suggesting fair value within the broader growth curve. The light green “Still Cheap” band extends from around $90,650 to $117,105, indicating potential moderate upside if Bitcoin continues to follow its historical adoption trend.
Above this level, the “HODL!” band ranges from $117,105 to $153,445, typically aligned with strong bullish momentum without speculative excess. The “Is this a bubble?” band rises from about $153,445 to $195,567, reflecting conditions where prices have historically begun to deviate from long-term averages. The “FOMO intensifies” band encompasses approximately $195,567 to $250,745, signaling increased speculative behavior.
Furthermore, the “Sell. Seriously, SELL!” range stretches from around $250,745 to $326,589, while the “Maximum Bubble Territory” band reaches from roughly $326,589 to about $439,404, levels that have historically been linked to major cycle peaks.
Considering Bitcoin“s current price of about $89,200, the Rainbow Chart indicates that by January 1, 2026, BTC is most likely to trade between approximately $90,000 and $117,000 under neutral conditions. A bullish momentum could push prices towards $153,000. However, even a significant downturn would place long-term structural support well above $50,000, according to the model.
In summary, the Bitcoin Rainbow Chart for January 1, 2026, delineates a range that highlights potential buying opportunities while also indicating areas of caution for investors.
