Bitcoin’s position on the Rainbow Chart suggests the cryptocurrency could remain in deep undervaluation territory heading into August 1, 2026. According to data from BlockchainCenter’s Dynamic Rainbow Chart, the model projects a wide valuation range for that date: from roughly $63,400 at the lowest band to about $517,500 at the top.
The chart’s fair-value ‘HODL’ zone sits at around $181,200, which is nearly three times Bitcoin’s current price of $62,655. Right now, Bitcoin trades marginally below the chart’s lowest band, called ‘Basically a Fire Sale.’ That threshold is set at $63,440, a level historically reached only during severe bear markets, like after the FTX collapse in late 2022. Previous visits to these deep blue bands have often preceded significant long-term recoveries, though history doesn’t guarantee future results.
What the Rainbow bands show for August 1
The chart includes several valuation zones above the fire sale area. For August 1, the ‘BUY!’ zone is placed at approximately $82,500, followed by the ‘Accumulate’ band at $107,200 and the ‘Still Cheap’ zone at $139,400. Higher up, the model identifies $235,600 as the ‘Is This a Bubble?’ level, $306,200 as the ‘FOMO Intensifies’ zone, and $398,100 as the ‘Sell. Seriously, SELL!’ band. The very top, ‘Maximum Bubble Territory,’ is roughly $517,500.
Bitcoin’s current position below the fire sale threshold comes after a sharp correction from its October 2025 all-time high of $126,198. The decline accelerated in 2026 as the Federal Reserve kept interest rates elevated. Spot Bitcoin ETFs also recorded a record $4.5 billion in outflows during June, which helped push BTC to a 21-month low of $58,115.
Market focus on Fed meeting
Attention now turns to the Fed’s July 28-29 meeting, with markets pricing in a 70% chance of another rate hold. A hawkish outcome could send Bitcoin back toward $58,115, while a dovish surprise might support a move toward $65,600 and potentially $70,000. Based on these scenarios, Bitcoin could trade between $58,000 and $66,000 on August 1. At the upper end of that range, BTC would still sit within or only slightly above the Rainbow Chart’s deepest undervaluation bands. To exit the ‘Fire Sale’ zone, Bitcoin needs to surpass $63,440, and moving beyond the ‘BUY!’ band requires $82,500.
It is worth noting that the Bitcoin Rainbow Chart maps the cryptocurrency’s price against a long-term logarithmic trend. The latest Dynamic version updates daily using a Power Law regression based on Bitcoin’s full price history since 2012, with a reported fit strength of 94.3%. BlockchainCenter emphasizes that the Rainbow Chart is not a predictive tool or investment advice. Because the model recalculates daily, its valuation bands shift over time, making them a snapshot of Bitcoin’s historical trend rather than a reliable forecast of future prices.
