Bitcoin Enters Rainbow Chart Buy Zone as Demand Weakens Ahead of $110K Breakout
Bitcoin has entered the light green “buy” zone on the long-term Rainbow Chart after peaking on May 22 and consolidating between $100,000 and $110,000 for nearly a month. On-chain data from CryptoQuant show realized profits remain below $1 billion on a seven-day moving average, indicating subdued profit-taking and panic. Meanwhile, the Rainbow Chart’s historical reliability around halving cycles suggests upside potential. However, a weakening demand metric—measuring new supply versus dormant coins—signals fading buying interest that could stall a breakout above $110,000. Technical indicators point to an oversold buy/sell pressure delta and a possible final phase of Wyckoff Accumulation. Traders should watch the $100,000–$110,000 band closely: a decisive move past $110,000 may trigger a rapid advance toward $130,000, while failure to break resistance could maintain tight range trading.
Neutral
The news presents mixed signals: Bitcoin’s entry into the Rainbow Chart buy zone highlights potential upside, while weakening demand metrics and a prolonged $100K–$110K consolidation suggest limited buying pressure. Technical indicators such as an oversold pressure delta and a possible final phase of Wyckoff Accumulation point to a critical juncture. A successful breach above $110K could spark a bullish run toward $130K, but failure to break resistance may keep BTC range-bound. Overall, the balanced outlook warrants a neutral assessment for both short-term consolidation and longer-term breakout potential.