Bitcoin’s been on a roll lately, climbing over 37.5% since April. But will this rally continue? One analyst thinks Bitcoin could reach a whopping $120,000, but only if a certain condition is met.
On-Chain Data: The $120,000 Prediction
The prediction comes from analyst Ali Martinez, who’s looking at a metric called Cumulative Value Days Destroyed (CVDD). CVDD basically tracks how much long-term Bitcoin holders are spending. A big spike in CVDD usually means these holders are selling, suggesting the market might be overheating. Conversely, a low CVDD indicates accumulation.
CryptoQuant, an analytics firm, has built a model based on CVDD. This model shows several key levels. One level, called “Accessing Tops,” lines up with previous Bitcoin peaks ($20,000 in 2017 and $69,000 in 2021). This model suggests the next peak could be around $120,000.
Another crucial level is the “Accumulating Phase 2” support, currently sitting at $90,000. This is a key support level; if Bitcoin falls below this, the bull run could be in jeopardy.
The $90,000 Support Level is Key
Martinez emphasizes that holding the $90,000 support is absolutely vital. If Bitcoin can stay above this level, the path to $120,000 might be open. However, falling below it could signal a shift in market sentiment.
Current Bitcoin Price and Market Sentiment
At the moment, Bitcoin is trading around $103,000. While there’s some positive sentiment (like strong Bitcoin ETF inflows), daily trading volume is down, suggesting less market activity. The next resistance level is around $105,000, but Martinez believes a sustained close above $107,000 is needed for a significant upward move. Bitcoin remains the dominant cryptocurrency, with a market cap exceeding $2 trillion.
