Bitcoin Rainbow Chart says ‘accumulate’ – But analysts warn of bear market

ambcryptoPublished on 2026-01-28Last updated on 2026-01-28

Abstract

Bitcoin briefly rallied to $89,300 following eased geopolitical tensions, but the overall trend remains bearish. On-chain analysts indicate whale accumulation is rising while retail investors exit. Traditional bullish models like Stock-to-Flow and Power Law have failed to predict market behavior. Both the Bitcoin Rainbow Chart and Pi Cycle Top indicator did not signal a market top, unlike previous cycles, suggesting either an incomplete cycle or a prolonged bear market. Analysts caution that underlying data supports a deepening crypto winter, contradicting more optimistic informal indicators. The market awaits clearer signals from macroeconomic events and spot flow momentum.

Bitcoin has rallied 3.74% from its lows on the 25th of January, reaching $ 89,300 at the time of writing. The move came after U.S. President Donald Trump said they would pause imposing new tariffs after a meeting with NATO Secretary General Mark Rutte.

This development eased the macro market uncertainty, but the Bitcoin price trend remains bearish.

AMBCrypto reported that whale balances were climbing, while retail investors were leaving.

There is a case for a bullish Bitcoin reaction as geopolitical uncertainties appeared to ease. The FOMC meeting will bring added volatility to the market, but the consolidation around $90k needs decisive spot flows to bring recovery.

If there is a recovery to be made.

Traditional Bitcoin top signals fail to fire

In a post on X, CryptoQuant analyst Julio Moreno opined that the crypto market was trying to make up narratives to fit their biases.

When they fail, they make up the next one, while missing what the actual data says-that Bitcoin is now bearish.

“S2F failed. Power law failed. M2 failed. Business cycle failed. The latest model to try and catch the Bitcoin low seems to be the BTC/Gold ratio, which of course will show that Bitcoin is tremendously undervalued against gold. Fits the narrative.”

Analyst Axel Adler Jr also reported that the crypto winter is deepening. This was not a good sign for investors looking at the current bearishness as part of a pullback before new all-time highs.

This can be extremely confusing because some of the older (albeit less serious) indicators, such as the Bitcoin Rainbow Chart, did not even get close to a market top. The highest that BTC prices reached in this cycle were into the “Accumulate” zone.

In 2017, the extremes were tested, and in 2021, the extremes were approached. The current one was way off if a crypto winter is indeed underway.

Neither did the Pi Cycle Top indicator fire a sell signal. It had successfully predicted the market top in the previous three cycles. Like the Bitcoin Rainbow Chart, the current cycle was massively overestimated.

Unless, of course, you’re willing to accept that Bitcoin can indeed push to new highs past $150k in 2026.

Final Thoughts

  • Onchain analysts agreed that the data showed a Bitcoin bear market was underway.
  • This went against what traditional, and less widely used indicators, such as the Bitcoin Rainbow Chart, were saying.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Related Questions

QWhat was the immediate catalyst for Bitcoin's 3.74% rally from its January lows according to the article?

AThe rally came after U.S. President Donald Trump said they would pause imposing new tariffs following a meeting with NATO Secretary General Mark Rutte.

QAccording to CryptoQuant analyst Julio Moreno, what is the current market trend for Bitcoin based on the data?

AJulio Moreno opined that the actual data shows that the crypto market is now bearish, contrary to the various narratives being made up.

QWhat does the Bitcoin Rainbow Chart's 'Accumulate' zone suggest, and how does it contrast with the analysts' warnings?

AThe Bitcoin Rainbow Chart suggests an 'Accumulate' phase, indicating it might be a good time to buy. This contrasts with on-chain analysts who warn that the data shows a bear market is underway.

QWhich indicator, mentioned in the article, had successfully predicted the market top in the previous three cycles but did not fire a sell signal in the current one?

AThe Pi Cycle Top indicator had successfully predicted the market top in the previous three cycles but did not fire a sell signal in the current cycle.

QWhat two key factors does the article suggest are needed for a decisive Bitcoin price recovery above $90k?

AThe article suggests that decisive spot flows are needed to bring recovery, and the upcoming FOMC meeting will also bring added volatility to the market.

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