The Bitcoin Rainbow Chart initiatives that Bitcoin ($BTC) will stay in its deepest undervaluation zone heading into August 1, 2026.
On this line, knowledge from BlockchainCenter’s Dynamic Rainbow Chart reveals Bitcoin’s valuation vary for August 1 stretching from roughly $63,400 on the backside of the rainbow to roughly $517,500 on the high.
The mannequin’s fair-value ‘HODL’ zone stands at round $181,200, almost 3 times Bitcoin’s present worth.
With Bitcoin buying and selling at $62,655, the cryptocurrency sits marginally under the chart’s lowest ‘Mainly a Fireplace Sale’ band.
For August 1, the chart locations the ‘BUY!’ zone at roughly $82,500, the ‘Accumulate’ band at $107,200, and the ‘Nonetheless Low-cost’ zone at $139,400.
Above the ‘HODL’ band, the mannequin identifies $235,600 because the ‘Is This a Bubble?’ stage, $306,200 because the ‘FOMO Intensifies’ zone, $398,100 because the ‘Promote. Significantly, SELL!’ band, and roughly $517,500 as ‘Most Bubble Territory.’
Bitcoin’s present worth locations it under the ‘Fireplace Sale’ threshold of $63,440, a stage traditionally reached solely throughout extreme bear markets.
Related readings appeared after the FTX collapse in late 2022, with earlier visits to the deepest blue bands typically previous vital long-term recoveries.
Bitcoin’s 2026 bearish case
Bitcoin’s place on the chart follows a pointy correction from its October 2025 all-time excessive of $126,198.
The decline accelerated in 2026 because the Federal Reserve saved charges elevated, whereas spot Bitcoin ETFs recorded a file $4.5 billion in June outflows, serving to push $BTC to a 21-month low of $58,115.
Consideration is now on the Fed’s July 28-29 assembly, with markets pricing in a 70% likelihood of one other charge maintain.
A hawkish final result may ship Bitcoin again towards $58,115, whereas a dovish shock might assist a transfer towards $65,600 and probably $70,000.
Primarily based on these eventualities, Bitcoin may commerce between $58,000 and $66,000 on August 1. Even on the higher finish of that vary, $BTC would stay inside or solely barely above the Rainbow Chart’s deepest undervaluation bands, needing to surpass $63,440 to exit the ‘Fireplace Sale’ zone and $82,500 to maneuver past the ‘BUY!’ band.
Notably, the Bitcoin Rainbow Chart maps Bitcoin’s worth in opposition to a long-term logarithmic pattern. Its newest Dynamic model updates every day utilizing a Energy Legislation regression based mostly on Bitcoin’s full worth historical past since 2012, with a reported match power of 94.3%.
BlockchainCenter emphasizes that the Rainbow Chart just isn’t a predictive software or funding recommendation.
As a result of the mannequin recalculates every day, its valuation bands change over time, making them a snapshot of Bitcoin’s historic pattern fairly than a forecast of future costs.
