Key takeaways:
Bitcoin’s Doji candle and a bullish chart fractal hint at a rally to $120,000.
Bitcoin HODLers are absorbing freshly sold BTC, a historically bullish sign for its price.
Bitcoin (BTC) price broke out from a descending trendline pattern after forming a local bottom at $100,300 on June 6, and now the asset looks set to retest its all-time high.
On the weekly chart, a Doji candle has emerged, absorbing the sell-side liquidity accumulated over the past three weeks. Characterized by a small body and long wicks, the Doji candle reflects indecision between buyers and sellers and often precedes major price moves. The recent absorption of liquidity below the candle suggests a possible exhaustion of bearish pressure, potentially laying the groundwork for an upward surge.
However, crypto analyst Jackis cautioned that this weekly doji needs confirmation. He noted:
“A weekly #Bitcoin Doji after rejecting swing highs the week before means nothing by itself. Literally the same thing happened before Covid (different context this time though). We need to see the price confirming with a break higher—if so, only then we run.”
Adding to the bullish narrative, 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.
Related: $100K becomes bulls’ key level: 5 things to know in Bitcoin this week
The Bitcoin market now favors holders
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.
Data from CryptoQuant shows spot market volumes falling to just $965.6 million, while futures trading remains elevated. 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:
“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.”
Related: Bitcoin price will see ‘short-term correction’ before $140K: Analysts
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
