Important takeouts:
Bitcoin’s doji candles and bullish chart fractals suggest a rally at $120,000.
Bitcoin Hodler absorbs BTC that has just been sold. This is a historically bullish sign of its price.
Bitcoin (BTC) prices came from a downtrend line pattern after forming a local bottom at $100,300 on June 6th, but the assets are now set to regain their record highs.
On the weekly charts, doji candles appeared, absorbing the sell-side liquidity that had accumulated over the past three weeks. Featuring a small body and a long core, Doji candles reflect indecisiveness between buyers and sellers, often leading to large price movements. Recent fluidity absorption under candles suggests possible bear pressure fatigue and can lay the foundation for an upward surge.
However, Crypto analyst Jackis warned that this weekly Doji needs to be checked. He pointed out:
“Weekly #bitcoin doji means nothing after rejecting swing high a week before. The same literally happened before Covid (in a different context this time).
In addition to the bullish story, Crypto Trader’s Krillin highlighted the fractal pattern between BTC price actions and current price actions following the approval of the Spot Exchange-Traded Fund (ETF) in January 2024. This pattern is characterized by the “candle of God.” This suggests the possibility of strong upward movement. Historically, such self-healing fractals in such advanced time frames have a accuracy of 70-80% in predicting trend reversals.
In early 2024, BTC was impressively rallied following the integration phase. As of June 9th, Bitcoin is over $106,000, so a similar breakout could soon lead to prices ranging from $110,000 to $120,000.
Related: $100K becomes the key level for the Bulls: 5 things you need to know about Bitcoin this week
The Bitcoin market is currently supporting holders
In parallel with technical indicators, market sentiment shifted to accumulation. Data shared by Bitcoin researcher Axel Adler Jr. shows that the average spot trading volume for centralized exchanges (CEXS) plummeted to the level it last saw in October 2020.
Data from encryption shows that the volume of the spot market has dropped to just $965.6 million, and futures trading continues to rise. This suggests that investors are in a “HODL” mode, reminiscent of the accumulation stage that precedes the explosive gathering of Bitcoin in the second half of 2020.
In support of this shift, Onchain analyst Boris highlighted the divergent behavior between short- and long-term Bitcoin holders. For the past 30 days, Short Term Holders (STH) have been distributing 592,000 BTC for signal uncertainty or profit-taking. In contrast, the Long-Term Holder (LTHS) – a shed that holds BTC for more than 155 days – has accumulated 605,000 BTC from an all-time high. Boris explained:
“While short-term holders are leaving, long-term holders are intervening. This suggests that the ongoing uptrends are not merely speculative, but structurally supported by strong hands.”
Related: Bitcoin price shows “short-term correction” before $140K: Analyst
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
