Bitcoin Price Signals Potential Rally Toward $120,000

Bitcoin's price has shown signs of a potential rally, with a Doji candle and a bullish chart fractal suggesting a move towards $120,000. The Doji candle, which appeared on the weekly chart, indicates indecision between buyers and sellers, often preceding significant price movements. This candle has absorbed sell-side liquidity accumulated over the past three weeks, suggesting a possible exhaustion of bearish pressure and laying the groundwork for an upward surge.

Crypto analyst Jackis cautioned that this weekly Doji needs confirmation. He noted that a similar pattern occurred before the Covid pandemic, and the price needs to confirm with a break higher to validate the bullish signal. Crypto trader Krillin highlighted a fractal pattern between BTC’s price action after its spot exchange-traded fund (ETF) approval in January 2024 and the current price action. This pattern features a “god candle,” which hints at the possibility of a strong upward move. Historically, such self-repeating fractals on higher time frames carry a 70–80% accuracy in forecasting trend reversals.

In early 2024, BTC rallied impressively following a consolidation phase. With Bitcoin hovering above $106,000 as of June 9, a similar breakout could soon send prices toward $110,000–$120,000. Parallel to technical indicators, market sentiment has shifted toward accumulation. According to data shared by Bitcoin researcher Axel Adler Jr., the average spot trading volumes on centralized exchanges (CEXs) have plunged to levels last seen in October 2020. This suggests that investors are entering a “HODL” mode, reminiscent of the accumulation phase that preceded Bitcoin’s explosive rally in late 2020.

Supporting this shift, onchain analyst Boris highlighted diverging behavior between short and long-term Bitcoin holders. Over the past 30 days, short-term holders (STHs) have distributed 592,000 BTC as BTC rallied toward $110,000, signaling uncertainty or profit-taking. In contrast, long-term holders (LTHs)—wallets holding BTC for over 155 days—have accumulated 605,000 BTC since the all-time high. Boris explained that while short-term holders are exiting, long-term holders are stepping in. This suggests that the ongoing uptrend is not just speculative—it’s structurally supported by strong hands.