Bullish Technical Signals Point to BTC Rally to $120,000

Key Takeaways:

Bitcoin’s Doji candle and bullish chart pattern suggest rally to $120,000.
Coin holders absorbing fresh selling pressure despite downtrend.

Bitcoin (BTC) price broke out of a descending trendline pattern after forming a local bottom at $100,300 on June 6, showing early signs the digital asset could retest recent highs. Analysts cite technical indicators as well as holder behavior suggesting a potential push toward $120,000.

Bitcoin (BTC) price broke out from a descending trendline pattern after forming a local bottom at $100,300 on June 6, now showing signs it could retest its all-time high.

Bitcoin 4-hour chart showing breakout from downtrend

Bitcoin 4-hour chart. Source: Cointelegraph/TradingView

On the weekly chart, a Doji candle emerged, which chartists interpret as absorbing three weeks of bearish accumulation. This technical formation, characterized by a small body with long wicks on a falling market, indicates a momentary pause in downward momentum.

Falling cryptocurrency analyst Jackis cautioned against premature celebrations around the weekly Doji pattern:

“A weekly #Bitcoin Doji after rejecting swing highs the week before means nothing by itself. We need to see the price confirming with a break higher—if so, only then we run.”

Comparison of weekly Doji candles to historical patterns

Bitcoin weekly doji candle comparison by Jackis. Source: X.com

Technical trader Krillin pointed to a fractal pattern between BTC’s price action after its ETF approval in January 2024 and the current price action. This pattern features a “god candle” formation that has historically preceded significant upward moves with roughly 70–80% accuracy.

$Bitcoin fractal analysis$
Bitcoin fractal analysis by Krillin. Source: X.com

Bitcoin rallied impressively following ETF approval in early 2024. With BTC hovering above $106,000, the current breakout could send prices toward $110,000–$120,000 to start.

Market sentiment has shifted toward accumulation as technical indicators suggest the market favors established holders. Spot trading volumes on centralized exchanges have dropped to levels not seen since October 2020, suggesting the traditional accumulation phase preceding bull markets is underway.

Comparison of CEX spot vs futures trading volumes

Bitcoin CEX vs. spot trading volumes. Source: Axel Adler Jr/X

Analysis from onchain experts underscores this structural shift, noting long-term holders (LTHs) are increasing their positions while short-term holders exit. This distribution suggests strong fundamental support building.

“While short-term holders are exiting, long-term holders are stepping in. This suggests that the ongoing uptrend is not just speculative—it’s structurally supported by strong hands.”