Leading digital asset, Bitcoin, continues to capture the market’s attention with its bullish move above the $96,000 price mark on Thursday. After the move, recent developments on key metrics are now pointing to a more sustained upward trend for BTC as past structures that preceded significant rallies reemerge.
Bullish Bitcoin Accumulation Pattern Resurfaces
Bitcoin’s price is hovering near crucial resistance levels due to growing market momentum. As the asset gains traction, Crypto Dan, an on-chain expert and investor, has outlined a key trend in its market dynamics that could trigger a notable upsurge.
Crypto Dan’s analysis hinges on a classic accumulation structure that previously preceded major rallies for BTC. According to the expert, this classic structure has resurfaced in current dynamics, suggesting that the flagship asset may be on the verge of another significant upward move.
The crucial familiar setup characterized by steady short-term holders’ activity suggests that these investors are quietly positioning for the next leg up in BTC’s price due to past occurrences.
Looking at the chart, this setup first appeared in January last year, and there was a sharp increase in the activity of short-term holders, especially 1-day to 1-week holders. When this occurred, BTC shifted into a strong upward phase.
A similar bullish phase was also spotted the second time it happened in October last year, causing BTC to reach new highs. During this period, the strong rally sparked by heightened short-term activity was also observed across major altcoins like Ethereum, Solana, and XRP.
After examining the Bitcoin Realized Cap UTXO Age Bands, Crypto Dan has highlighted that a similar rise in short-term holders’ activity is being seen once more, which might indicate the start of another positive period like in the past.
Even though the development hints at a rally, it is important to note that this indicator has a track record of moving ahead of huge price spikes, making it a reliable indication of accumulation. Crypto Dan further highlighted that Bitcoin could be set for a push to surpass the $100,000 mark and launch a robust upward phase if the trend extends in the short term.
BTC Short-Term Holders YoY Realized Price Trajectory
Amid the short-term holders’ activity spike, Axel Adler Jr., macro researcher and author, points to a shift in the Bitcoin STH YoY Realized Price. According to the macro researcher, the key measure shows that the STH YoY realized price has moved to 50%.
Presently, the metric at 58% does not reflect any significant impact on BTC’s price. This is because the preceding macro cycle saw price spikes to $70,000 and $100,000 peaks at levels of 165% and 144%, respectively, and after that, profit-taking took place. Meanwhile, for the STH YoY to grow from 58% to about 140%, Bitcoin would need to hit about $171,000 at the current price of $94,000.
