Bitcoin has once again taken the spotlight in the cryptocurrency market, with its price surging past a crucial resistance zone and sparking speculation about whether $110,000 could be the next major milestone. The bullish technical patterns forming and on-chain data aligning have painted a promising picture for BTC’s price structure, but there are still a few factors to consider.
A recent report revealed that Bitcoin long-term holders are not distributing their holdings, indicating that the token is in a quiet accumulation phase. The lack of spikes in Dormancy flow reduces sell pressure from old coins, which could be a bullish signal for Bitcoin. The data from Glassnode shows that BTC long-term holder (LTH) spending has been minimal for the first time since June 10. With LTH supply near all-time highs at around 14.7 million BTC, seasoned investors seem reluctant to distribute their holdings despite recent market volatility. This minimal long-term holder selling post-March 2020 has historically set the stage for explosive rallies.
Bitcoin volatility has dropped below Gold for the first time ever, signaling a historic shift in finance. This suggests that Bitcoin is maturing and the market is recognizing its potential as a stable store of value. As adoption grows and institutional confidence deepens, BTC could start to exhibit less volatile behavior. With BTC price reclaiming $105,000 and funding rates turning negative, there has been a classic setup for a short squeeze. History suggests that when shorts pile in, an upward move could be imminent for Bitcoin and altcoins.
In the long term, Bitcoin price has approached a crucial resistance zone, indicating a major breakout is underway. Previously, when the price reached the final resistance zone between $69,400 and $72,150, the weekly CMF dropped below the average and triggered a rebound, similar to what happened before the Q4 2024 rally. Additionally, the weekly MACD, which was on the verge of undergoing a bearish crossover, has displayed a bullish divergence.
Therefore, it is expected that the Bitcoin price will accumulate along the resistance zone for a few weeks until buying volume intensifies, leading to a breakout to a new all-time high. The market indicators and on-chain data point towards a potential Bitcoin bull run, with $110,000 being a possible milestone in the near future. As Bitcoin continues to gain momentum and investor confidence, the path towards new highs seems more likely than ever before.