Bitcoin’s price has been consolidating, which may seem bearish at first. However, on-chain data suggests strong bullish potential, with long-term holders (LTHs) supporting the market.
Bitcoin Holders Signal Strength
A key metric, the Value Days Destroyed Multiple (VDDM), tracks Bitcoin’s market activity. When VDDM rises above 1.4, it signals an overheating market, while extreme values above 2.9 often precede corrections.
Right now, VDDM is at 1.22, suggesting a steady market structure rather than an overheated rally. Unlike previous cycles, Bitcoin’s price movements remain controlled, even at all-time highs (ATHs). This stability reduces the risk of sharp sell-offs, indicating room for further growth.
Long-Term Holders Support Bitcoin’s Uptrend
Bitcoin’s long-term holder (LTH) profit-to-loss ratio remains high, meaning most investors are still in profit. Historically, when minimal supply is held at a loss, BTC enters a strong accumulation phase, fueling price surges.
Since LTHs continue holding rather than selling, Bitcoin faces lower selling pressure, increasing the likelihood of a sustained rally.
Bitcoin Price Prediction: New Highs Ahead?
Bitcoin’s Parabolic Curve pattern suggests a breakout is imminent. Over the past year, BTC has formed three bases, a setup that often leads to massive rallies.
- To confirm an uptrend, BTC must close above $110,000, potentially pushing prices to $120,000 in the near term.
- The Parabolic Curve model hints at a long-term target of $185,661 if historical trends repeat.
- Key support sits at $92,324. A drop below this level could send BTC toward $85,000, delaying further gains.
For now, Bitcoin remains in a strong position, with bullish momentum building for its next move.
