Bitcoin fractal, lifting Hodes’ tip for rally to $120k

Key points:

• Bitcoin’s Doji candle and fractal tips for bullish charts reached $120,000.

• Bitcoin Hodlers are absorbing freshly sold BTC, a historically bullish sign.

Bitcoin (BTC) has stood out from the downward trendline pattern after forming a local bottom at $100,300 on June 6, and now the asset looks to retest its all-time high.

On the weekly chart, a DOJI candle appears, absorbing the seller liquidity accumulated over the past three weeks. Doji candles are characterized by small bodies and long wicks, reflecting the hesitation between buyers and sellers and often before major price transfers. Recent absorption of liquidity under candles suggests that bearish pressure may be depleted, possibly laying the foundation for an upward surge.

However, crypto analyst Jackis warned that this week’s DOJI needs to be confirmed. He pointed out:

“The weekly #bitcoin doji doesn’t make any sense in rejecting the swing of the previous week itself. Literally, it’s the same thing happened before Kuvid (although this time different). We need to see higher prices, higher prices, and if so, only that, we run.”

In his bullish narrative, crypto trader Krillin highlighted the fractal pattern between price actions of BTC, after his spot exchange-traded fund (ETF) approved January 2024 approval and current price action. This pattern features “God Candle”, which implies a strong possibility of upward movement. Historically, this self-repeating fractal has a predicted trend reversal accuracy of 70-80% over a higher time range.

In early 2024, BTC held an impressive rally during the merger phase. As of June 9, Bitcoin hovered above $106,000 as of June 9, and a similar breakthrough could soon send prices to $110,000 to $120,000.

Related: $100,000 Becomes a Key Level for Bulls: 5 Things to Know for Bitcoin This Week

Bitcoin market is now beneficial to holders

Parallel to technical indicators, market sentiment has turned to accumulation. The average spot trading volume on the centralized exchange (CEXS) has fallen to its last October 2020 level, according to data shared by Bitcoin researcher Axel Adler Jr.

Data from cryptocurrencies show that spot market volume is only $965.6 million, while futures trading is still improving. This suggests investors are entering the “HODL” mode, reminiscent of the accumulation phase of Bitcoin before the explosive rally in late 2020.

OnChain analyst Boris, who supports this shift, highlighted the different behaviors between short-term and long-term Bitcoin holders. Over the past 30 days, short-term holders (STH) allocated 592,000 BTC as BTC rose to $110,000, indicating uncertainty or profitability. By comparison, long-term holders (LTHS) (holding BTC for more than 155 days) hold 605,000 BTC due to an all-time high. Boris explained:

“While short-term holders are exiting, long-term holders are stepping in. This shows that the ongoing uptrend is not only speculative, but also structurally strong hands backed.”

Related: Bitcoin price to see ‘short-term correction’ by $140K: Analysts

This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.