Bitcoin (BTC) Price Prepares for a $120k Rally as Long-Term Holders Reduce Daily Spending by 60%

The pioneer cryptocurrency, Bitcoin, witnessed a bullish turnaround with a two-day rally, registering a 2% jump to $97,100.

Bitcoin price showcases a two-day rally with a 2% gain, currently trading at $97,100.

BTC Long-Term Holders Reduce Daily Spending by 60%

Pioneer cryptocurrency, Bitcoin, showcases a bullish turnaround with a two-day rally. The world’s largest digital asset registered a 2% jump,ܞ bringing its price to $97,100. This uptick comes as selling pressure from long-term holders continues to reduce, stalling downside momentum and potentially setting BTC up for a $120k rally.

Key Highlights:

Bitcoin Long-Term Holders Reduce Daily Spending by 60%

Crypto analyst Axel Adler Jr highlights a significant shift in Bitcoin’s long-term holder behavior. According to the report, long-term holders have drastically cut down their daily spending, slashing it by 60% from the $90,000-$100,000 range to just 40,000 BTC per day.

This shift signals a strong conviction among investors, possibly anticipating higher price levels before offloading their holdings. According to on-chain data, a rally to $120,000 high could secure investors a staggering 500% profit, which could prompt them to book profit.

However, the historical trend shows the major top formation for Bitcoin price when the indicator reaches a high-spending area, which currently lies at $120k. Thus, the pullback in long-term holders selling could limit the downside potential for BTC.

Triangle Pattern Breakout Sets BTC For New High

Over the past three weeks, the Bitcoin price showcased a sluggish sideways trend resonating around the $95,000 level. This consolidation confined between two trendlines reveals the formation of a symmetrical triangle pattern.

Theoretically, the pattern drives a temporary consolidation before the asset price resumes with the prevailing market trend. With an intraday gain of 1.3%, the BTC price teases an upside breakout from the triangle pattern and reclaims the 20- and 50-day EMA slope.

If the breakout holds, the buyers could drive another 10% surge to challenge the multi-month resistance of $108,000. A successful flip of this overhead resistance is crucial for Bitcoin price to reach $120k high.