Bitcoin’s recent level of $95k is a great buying zone for mid-term investors.
According to the Bitcoin rainbow chart, a model used to identify key inflection points and valuation-based market cyclical patterns, a ‘fire sale’ for the asset was flashed.
The last time the signal was flagged was in H2 2024 and Q1 2025, Bitcoin [BTC] rebounded and cooled off after surging to the ‘accumulate’ zones.
As of writing, the ‘accumulate’ zone was around $150K-$160K price area. That would translate to a potential 60% upside if past trends repeat.
However, if the 4-year cycle isn’t dead as some claim, and history repeats itself, then a better discount window could be feasible if BTC slips to $65K-$75K area. This is a “BTC is dead” zone that marked cycle lows of past bear markets.
Is a mid-term relief likely?
The positive outlook in the short to medium term was also reinforced by the decline in selling pressure on the derivatives market. According to CryptoQuant analyst DarkFost, the pressure in the Futures market had dropped from nearly $500 million to $51 million – A 90% drop in selling.
He added,
“If Net Taker Volume were to turn positive again, it would clearly ignite the fuse for a bullish reversal.”
In other words, the current BTC value would be a great buying opportunity if the net selling were to flip to net buying again.
Bitcoin’s overall demand is still low
Meanwhile, the spot market has also shown slight improvement.
The demand from corporate treasuries has bounced back, led by Strategy. Public firms have added approximately 43,000 BTC per month, or 260,000 BTC, over the past six months.
However, the current price consolidation within $85K-$95K range has absorbed significant distribution for OG Bitcoiners and ETFs in late 2025. In fact, in early 2026, the U.S. Spot BTC ETF inflows have posted mixed results.
As of press time, the overall demand for BTC, factoring in ETFs and corporate treasury firms, remained low, reinforcing little confidence among bulls.
The 30-day Average Apparent BTC demand has declined from over 800K BTC in December to 284K and was still dropping at press time. Unless the trend reverts, the recent attempt to break out above $95k may fail to materialize.
Overall, the BTC rainbow chart suggested that the current level or an extra dip to $65k-$75k would still be a discounted buying window.
Final Thoughts
- The Bitcoin rainbow chart flagged a ‘fire sale’ window at the current price of $95k.
- However, BTC demand was yet to fully recover from the late 2025 sell-off despite some relief signs.
