ARTICLE AD BOX
- Bitcoin’s (BTC) price may hit a realistic ATH of $120,000 according to on-chain indicators.
- Institutional adoption may push the asset to a new high soon.
After days of experiencing downtrends, Bitcoin’s (BTC) price has risen above critical thresholds and is now showing bullish signals. With only a few hours left before January concludes market participants are now watching to see Bitcoin’s move in February.
Bitcoin’s Current Outlook
According to Marketcap data, Bitcoin has been trading for $105,254, up 2.5% in the last 24 hours. Given the strong support from Long-Term Holders (LTHs), the flagship coin appears primed for a further rally. This cohort typically influences major market moves.
Looking into technical indicators, the Value Days Destroyed Multiple (VDDM) is at 1.22. VDDM, a crucial indicator for tracking Bitcoin’s market trends, compares short-term spending to yearly averages.
High values above 1.4 indicate a heating market, while extreme values over 2.9 have historically marked cycle peaks, signaling potential corrections. Thus, the current 1.22 value indicates a different market structure from previous cycles.
Despite hitting new All-Time Highs (ATHs), Bitcoin’s spent coin volume remains relatively controlled, deviating from previous bull runs. This indicates a longer sustained rally, reducing the risk of sudden sell-offs. With no severe increases in VDDM, Bitcoin has an opportunity for further expansion. This supports the argument of a continued surge in the foreseeable future.
Bitcoin’s long-term holder profit and loss volumes, another key indicator, provide insight into market momentum. The ratio between these two metrics remains relatively high, showing that most LTHs are profitable. This pattern is usually seen during bull market phases, where minimal supply is held at a loss, supporting the current accumulation trend.
The selling pressure remains low since long-term holders continue to retain their BTC. This pattern supports Bitcoin’s ability to sustain its upward trajectory without major declines. As a result, Bitcoin is positioned for sustainable gains, as limited LTH supply is at a loss. This pattern increases the likelihood of an extended upward move.
What to Expect for BTC Price in February 2025
The price of Bitcoin currently sits within a Parabolic Curve pattern, a structure that historically precedes major rallies. BTC has established three bases over the past year, establishing a major feature of this structure. The next phase of this structure points to an upcoming breakout, which might propel BTC to higher prices.
It is important to note that BTC must close over $110,000 to create a new all-time high. The Parabolic Curve pattern suggests a probable rally similar to prior base breakouts, which might propel BTC to $185,661. However, a more practical and realistic target puts BTC on track to hit $120,000 soon.
One major factor that could assist Bitcoin in reaching this goal is increased institutional adoption. As featured in our recent coverage, Robinhood hinted at futures trading for Bitcoin, which could increase acceptance for the coin.
Additionally, two US states, Illinois and Indiana, proposed a comprehensive bill to integrate Bitcoin into their financial strategies.