Bitcoin chart returns to 'HODL mode' as BTC price approaches new ATH level

Bitcoin (BTC) has broken out of the descending trendline after forming a local bottom at $100,300 on June 6, and currently, this asset seems to be testing its ATH level again.

Bitcoin Chart – 4 Hours | Source: TradingViewOn the weekly chart, a Doji candle has appeared, absorbing the sell-side liquidity accumulated over the past three weeks. Characterized by a small body and long wicks, the Doji candle reflects indecision between buyers and sellers and often precedes significant price movements.

The recent absorption of liquidity below the candle suggests that the downward pressure may have been exhausted, potentially laying the foundation for a strong growth.

Comparison of the weekly Doji candle of Bitcoin | Source: X.comHowever, analyst Jackis has warned that this weekly doji candle needs to be confirmed.

"The weekly Bitcoin Doji candle after being rejected at the top of the reversal last week means nothing at all. The same thing happened before Covid ( although the context this time is different ). We need to see the price confirm with a spike."

In support of the price increase narrative, trader Krillin highlighted the fractal pattern between BTC's price action after the spot ETF fund was approved in January 2024 and the current price action. This pattern features a "magic candle," indicating the potential for a strong upward movement.

In the past, repeating fractals on higher time frames had an accuracy of 70–80% in predicting trend reversals.

Bitcoin fractal analysis by Krillin | Source: XAt the beginning of 2024, BTC recorded impressive growth after a consolidation phase. With Bitcoin fluctuating above $106,000 as of June 9, a similar breakout could soon drive the price towards $110,000 - $120,000.

The Bitcoin market is currently supporting holders

Alongside technical indicators, market sentiment has shifted to accumulation. According to data shared by Bitcoin researcher Axel Adler Jr., the average spot trading volume on centralized exchanges (CEX) has decreased to levels seen in October 2020.

Data from CryptoQuant shows that spot trading volume has decreased to only 965.6 million USD, while trading in the futures market remains high. This indicates that investors are entering "HODL" mode, reminiscent of the accumulation phase before the explosive price surge at the end of 2020.

! Bitcoin CEX Futures Trading Volume vs Spot Trading | Source: Axel Adler JrIn support of this change, onchain analyst Boris has emphasized the differential behavior between short-term and long-term Bitcoin holders. Over the past 30 days, short-term holders (STH) distributed 592,000 BTC as BTC rose to $110,000, signaling uncertainty or profit-taking behavior. In contrast, long-term holders (LTH), wallets that have held BTC for more than 155 days, have accumulated 605,000 BTC since the ATH level.

"While short-term holders are exiting, long-term holders are entering. This indicates that the ongoing uptrend is not just speculative behavior but is structurally supported by strategic investors."

Accumulated Bitcoin data compared to long-term holder distribution data | Source: BorisVincent