Bitcoin’s recent level of $95,000 is a great buying zone for medium-term investors.
According to the Bitcoin rainbow graphica model used to identify key inflection points and valuation-based market cyclical patterns, a ‘fire sale’ for the asset was launched.
The last time the signal was marked was in the second half of 2024 and the first quarter of 2025, Bitcoin [BTC] rebounded and cooled after rising into the ‘accumulation zones’.
Source: Blockchain Center
At the time of writing, the ‘accumulation’ zone was around the $150,000-$160,000 price zone. That would translate to a potential upside of 60% if past trends repeat.
However, if the four-year cycle is not dead as some claim, and history repeats itself, then a better discount window could be achievable if BTC slides into the $65,000-$75,000 area. This is a ‘BTC is dead’ zone that marked the cycle lows of previous bear markets.
Is medium-term relief likely?
The positive short to medium term outlook was also reinforced by easing selling pressure in the derivatives market. According to CryptoQuant analyst DarkFost, pressure on the Futures market had dropped from almost $500 million to $51 million – a 90% drop in revenue.
He added,
“If Net Taker Volume were to turn positive again, it would clearly light the fuse for a bullish reversal.”
Source: CryptoQuant
In other words, the current BTC value would be a great buying opportunity if net selling turned back to net buying.
The overall demand for Bitcoin is still low
In the meantime, the spot market has also shown a slight improvement.
Corporate bond demand has returned, led by Strategy. Public companies do added approximately 43,000 BTC per month, or 260,000 BTC, over the past six months.
Source: Glassnode
However, the current price consolidation within the $85K-$95K range has absorbed significant distribution for OG Bitcoiners and ETFs by the end of 2025. In early 2026, inflows into US Spot BTC ETFs have seen mixed results.
At the time of writing, overall demand for BTC, taking into account ETFs and corporate government bonds, remained low, doing little to boost confidence among bulls.
The 30-day average apparent BTC demand has fallen from over 800,000 BTC in December to 284,000 and was still declining at the time of writing. Unless the trend returns, the recent attempt to break above $95,000 may not materialize.
Source: CryptoQuant
Overall, the BTC rainbow chart suggested that the current level or an additional dip to $65k-$75k would still be a discounted buying window.
Final thoughts
- The Bitcoin rainbow chart marked a fire sale window at the current price of $95k.
- However, BTC demand has yet to fully recover from the late 2025 sell-off, despite some signs of relief.