bitcoin is showing signs of a major upward move, with technical patterns and on-chain data pointing toward new all-time highs.
Technical Chart Patterns Indicate bullish Breakout
The recent formation of a Doji candle on the weekly chart signals indecision but also potential exhaustion of bearish pressure. This candle absorbed liquidity built over three weeks, hinting at a possible trend reversal.
As one analyst notes, “A weekly #bitcoin Doji after rejecting swing highs the week before means nothing by itself. We need to see the confirming with a break higher—if so, only then we run.”
This suggests traders should watch for confirmation signals before expecting sustained rallies.
Fractal Analysis Supports Upside Potential
Crypto trader Krillin highlights a fractal pattern resembling bitcoin's post-ETF approval rally earlier this year. This pattern features a “god candle,” historically associated with strong upward surges, with an accuracy rate of 70–80% for trend reversals on higher timeframes.
Krillin explains, “The fractal pattern hints at a strong move higher, potentially toward $120K.” Such self-repeating fractals reinforce the likelihood of a significant breakout as bitcoin hovers near $106,000.
market Sentiment Shifts Toward Accumulation
Supporting technical signals, investor behavior indicates a shift to HODL mode among long-term holders. Data from Axel Adler Jr. shows spot trading volumes on centralized exchanges have fallen to levels last seen in October 2020, suggesting increased accumulation activity.
Meanwhile, ’s futures trading remains elevated, indicating ongoing institutional interest despite lower spot volumes.
Onchain analyst Boris notes diverging behaviors: “While short-term holders are exiting, long-term holders are stepping in.” Since ’s recent high, LTHs have accumulated over 600,000 BTC, reinforcing confidence in a sustained bullish trend.
On-Chain Data Confirms bullish Support
The divergence between short-term distribution and long-term accumulation suggests that the current rally is not purely speculative but structurally supported by strong hands. As Boris states, “This suggests that ongoing uptrend is supported by strong hands rather than mere short-term profit-taking.”
This behavior echoes patterns seen before previous explosive rallies, adding further weight to the bullish outlook.
Implications for Crypto market and Investors
The convergence of technical patterns and on-chain accumulation indicates a potentially imminent surge toward new all-time highs in bitcoin’s . For investors in cefi assets and NFTs alike, understanding these signals can inform strategic decisions amid changing dynamics.
As bitcoin approaches $120K, traders should monitor confirmation signals like breaks above key resistance levels for early entry opportunities.
Overall, the current market environment points to a robust foundation for continued growth, driven by both technical indicators and investor confidence.
