The Rainbow Chart, a tool used for evaluating Bitcoin’s long-term value, indicates that Bitcoin is likely to remain below its historical trend valuation until October. This forecast comes after Bitcoin was unable to reclaim the significant $90,000 mark, which analysts suggest could have led to a surge toward six-digit valuations.
As of the latest data, Bitcoin was priced at $84,584, exceeding its 50-day simple moving average (SMA) of $78,136 and the 200-day SMA of $71,404. This upward movement suggests that the broad market trend continues positively.
(Source: Coinglass)
Interpreting the Rainbow Chart for Bitcoin
The October 31st valuation range on the Rainbow Chart significantly exceeds Bitcoin’s current valuation. It is important to note that this model prioritizes long-term evaluation over predicting Bitcoin’s price at the end of the month. The chart suggests a peak valuation of $1.36 million, categorizing this level as “maximum bubble territory,” historically linked to extraordinary market highs. However, the market has not reached such euphoria yet.
The chart differentiates various valuation bands, illustrating the dynamics of investor sentiment:
- “Sell”: $998,844, indicating a historical peak and likely profit-taking.
- “FOMO intensifies”: $733,467, representing phases of heightened speculative demand.
- Bubble Threshold: $547,041, delineating the point of potential market fervor.
- “HODL!”: $396,987, regarded as a fair value zone.
- “Still cheap”: $287,747, suggesting that Bitcoin is undervalued.
- “Accumulate”: $209,292, signaling further undervaluation.
- “Buy!”: $153,802, marking a significant undervaluation.
- “Essentially a fire sale”: $115,355, correlating with extreme pessimism in the market.
Currently trading around $85,000, Bitcoin is situated beneath the chart’s lowest valuation band, underscoring a disparity between prevailing prices and the longer-term projections indicated by the Rainbow Chart.
Short-Term Price Dynamics for Bitcoin
Longs on $BTC have been on the rise over the weekend.
We know how this ends. pic.twitter.com/CMAZJzC0l3
— Ted (@TedPillows) October 4, 2026
While the Rainbow Chart emphasizes long-term trends, recent price movements show Bitcoin’s rise to $87,000 has paused, with reports of significant sell-offs by large holders (whales) who liquidated more than 30,000 BTC. The $87,000 resistance also aligns with the upper limit of a trading channel that has constrained Bitcoin’s pricing over the past fortnight.
Following this resistance, the next anticipated support level is $82,500. If Bitcoin retraces to this point and demand from whales resumes, it could trigger another rally toward $87,000.
Although the Rainbow Chart’s projection of $1.36 million by the end of October seems highly ambitious, it serves as a benchmark for understanding potential price scenarios in varying market environments.
Exploring Bitcoin Hyper (HYPER) for Layer 2 Solutions
Bitcoin Hyper (HYPER) is an innovative layer 2 blockchain leveraging the Solana Virtual Machine (SVM), directly connected to the Bitcoin mainnet. This platform allows users to lock their Bitcoin and mint wrapped versions on its layer 2, facilitating rapid finality for decentralized finance (DeFi), non-fungible tokens (NFTs), and other applications.
The platform’s security is enhanced as the SVM periodically connects transaction batches to the Bitcoin blockchain. The HYPER token will serve various functions such as network transaction fees, staking, governance, and accessing premium features, with a total supply capped at 21 billion tokens allocated to development (30%), financial reserves (25%), and marketing initiatives (20%).
The mainnet is set to launch in Q4 2026, featuring a canonical bridge and ecosystem decentralized applications (dApps), alongside exchange listings. Its public presale has raised over $33.15 million, nearing the target of $33.58 million. Early investors can acquire HYPER at the presale rate of $0.0136867 before the Token Generation Event (TGE), with staking options expected to yield approximately 35% annual percentage yield (APY).
Investors interested in participating in the Bitcoin Hyper ecosystem can easily engage in the presale by connecting a compatible Web3 wallet on the official website. The platform accepts multiple cryptocurrencies such as SOL, ETH, BNB, USDC, or USDT, as well as traditional bank card payments.
To keep up with updates on development milestones, mainnet announcements, and community events, consider following Bitcoin Hyper on social media platforms and joining their official Telegram channel.
Disclaimer: Coinspeaker is dedicated to offering accurate and transparent reporting. This article aims to provide timely information but should not be construed as financial advice. Given that market conditions can shift rapidly, it’s advisable to verify the information independently and consult with a financial professional before making investment decisions.
Daniel Francis is a technical writer and Web3 educator with expertise in macroeconomics and decentralized finance. He has been involved in the crypto space since 2017, utilizing his experience in on-chain analytics to create detailed guides and insightful reports. He holds certifications from The Blockchain Council and strives to deliver informative content that pierces through market hype to uncover the real-world impacts of blockchain technology.
