The Bitcoin Rainbow Chart has released a structured price forecast for BTC as it approaches January 1, 2026. This prediction comes during a period of renewed bearish market sentiment, with Bitcoin recently trading below the $90,000 mark. At the time of this report, Bitcoin was valued at $89,257, reflecting a decline of over 1% in the last 24 hours and a slight gain of less than 1% over the past week.
This analysis utilizes a logarithmic growth model to assess Bitcoin”s price movements through color-coded bands, which represent historical market sentiment, valuation extremes, and the current phase of the cycle. The Rainbow Chart is not designed to pinpoint exact price peaks or troughs; instead, it outlines probable valuation ranges informed by Bitcoin”s historical performance.
For the date of January 1, 2026, the Rainbow Chart indicates that Bitcoin”s price may fall within the “Basically a Fire Sale” band, estimated between $39,700 and $51,980. This range has historically been linked with severe undervaluation and the tail end of bear market conditions. Above this band lies the “BUY!” zone, which ranges from approximately $51,980 to $70,125, often coinciding with significant long-term accumulation opportunities.
The “Accumulate” band, which sits between $70,125 and $90,650, aligns closely with Bitcoin”s present trading price, suggesting that it is fairly valued within the overarching growth trend. The subsequent band, labeled “Still Cheap,” extends from around $90,650 to $117,105, indicating potential moderate gains if Bitcoin continues its historical adoption trajectory.
Additionally, the “HODL!” band ranges from $117,105 to $153,445, a range typically characterized by strong bullish momentum devoid of speculative excess. The following bands, “Is this a bubble?” and “FOMO intensifies,” cover prices from around $153,445 to $250,745, and from $195,567 to $250,745, respectively, highlighting speculative behaviors as prices rise.
Lastly, the “Sell. Seriously, SELL!” band spans from about $250,745 to $326,589, while the “Maximum Bubble Territory” stretches up to approximately $439,404, reflecting historical price peaks. Given Bitcoin”s current valuation near $89,200, the Rainbow Chart suggests a probable trading range between $90,000 and $117,000 under neutral market conditions, with a potential rise towards $153,000 if bullish trends gain traction. Nonetheless, significant breakdowns below the trendline would still position long-term support well above the $50,000 threshold according to the model.
