The Bitcoin Rainbow Chart indicates that as of now, Bitcoin (BTC) is positioned within its deepest undervaluation zone, with projections suggesting a continued bearish trend leading into August 1, 2026. According to data from BlockchainCenter’s Dynamic Rainbow Chart, Bitcoin's price range for that date potentially lies between approximately $63,400 at the low end and $517,500 at the high end.

Currently trading at around $62,655, Bitcoin finds itself just below the chart's lowest threshold, dubbed a 'Fire Sale,' which is seen historically only during downturns in the market. Notably, similar readings emerged after the FTX collapse in late 2022, indicating a pattern where visits to these deeper undervaluation bands often signal opportunities for long-term recovery.

Assessing the Market Environment

The trend persists as the cryptocurrency continues to correct significantly from its October 2025 all-time high of $126,198. The situation worsened throughout 2026 as the Federal Reserve maintained higher interest rates, causing an outflow of $4.5 billion from spot Bitcoin ETFs in June, pushing Bitcoin to a 21-month low of $58,115. With the Fed's upcoming meeting on July 28-29, there is a 70% probability that rates will be held steady, a decision that could result in BTC fluctuating between $58,000 and $66,000 on August 1. This would still see Bitcoin remaining within the confines of its undervaluation bands.

Predictions and Investment Recommendations

The Rainbow Chart further indicates that Bitcoin must surpass $63,440 to exit the 'Fire Sale' zone and climb past $82,500 to move into the 'BUY!' band. Significantly, the model’s fair value 'HODL' zone stands at roughly $181,200, nearly three times its current value highlighting substantial potential growth for long-term holders.

  • ‘BUY!’ zone: $82,500
  • ‘Accumulate’ band: $107,200
  • ‘Still Cheap’ zone: $139,400

It’s essential to note that BlockchainCenter emphasizes that the Rainbow Chart serves as a historical trend analysis tool rather than a predictive model. As the bands are recalibrated daily using Power Law regression based on Bitcoin’s extensive price chronology since 2012, they reflect a snapshot of past trends rather than definitive forecasts.

This material is informational and not financial advice.