A prior bullish period for Bitcoin saw its price surge from approximately $60,000 to $100,000.
Bitcoin's LTH/STH ratio, a key on-chain metric, might be hinting at a potential $160,000 surge. Even though Bitcoin battles volatility at around $108,000, some analysts think it could climb to new heights.
Market watcher Axel Adler Jr. pointed out that Bitcoin's LTH/STH ratio shows a strong accumulation pattern, much like it did before record-breaking rallies. In the past, sustained growth in this ratio propelled BTC from around $28,000 to $60,000, and from $60,000 to $100,000. Currently, at the $100,000 mark, Adler notes the same signal, suggesting an accumulation phase that could last 4-8 weeks, leading to a powerful upward reversal.
If this pattern repeats, applying a conservative multiplier to Bitcoin's current price could result in a $160,000 target by the end of August.
Additionally, prominent trader Titan of Crypto has identified a bull flag formation on BTC's daily charts, hinting at a potential breakout to $137,000. The MACD indicator is also on the verge of a bullish crossover, a move usually seen as a trigger for price momentum shifts.
Technical and historical indicators support this bullish outlook. For instance, the Bitcoin Rainbow Chart places Bitcoin squarely in the "BUY" zone, a scenario akin to the one prior to its setting off on a 450% ROI surge in November 2020 and a 1,400% surge in May 2017.
This activity coincides with broader geopolitical and market forces, but BTC underperforms versus tech stocks like Nvidia and Oracle, raising questions about capital rotation.
In essence, the LTH/STH ratio could be a strong indicator that long-term Bitcoin holders, whose accumulation phases historically foretell major bull rallies, are still firmly in control, setting the stage for a possible price surge toward $160,000.
The LTH/STH ratio, a key on-chain metric, is showing a strong accumulation pattern similar to before record-breaking rallies, possibly signaling a potential $160,000 surge for Bitcoin. Technical indicators, such as the bull flag formation and the MACD indicator on the verge of a bullish crossover, also support this bullish outlook. Even the Bitcoin Rainbow Chart, which placed Bitcoin in the "BUY" zone prior to its significant rallies, is currently indicating a buy scenario for Bitcoin.
