#BTC 🚀 Bitcoin Blasts Past $120K – But On-Chain Metrics Send Mixed Signals

After a sharp dip earlier this week, Bitcoin has surged past $120,000 in the past 24 hours — signaling renewed bullish energy in the market. But not all metrics are lining up with the hype.

📊 NVT Divergence Raises Caution Flags

According to on-chain data, Bitcoin’s price rally is backed by strong transaction volume. However, analysts are eyeing a curious divergence between Bitcoin’s market cap and its network activity.

In a recent CryptoQuant QuickTake, analyst Sunflowr Quant highlighted unusual behavior in the NVT Golden Cross — a key indicator comparing market value to transaction volume.

> “A decline in the NVT ratio during a price increase implies that transaction volume is rising faster than market cap,” Sunflowr explained.

“This suggests the surge is underpinned by genuine economic activity.”

In other words, the pump may not be driven by hype or leverage — but by organic network usage and adoption. That’s bullish long-term.

🔄 Holder Behavior Signals Shift in Market Dynamics

A separate analysis by CryptoQuant’s IT Tech points to interesting trends in BTC holder behavior. In a report titled “Holder Rotation,” it’s revealed that:

Long-term holders (LTHs) — those holding for 155+ days — are offloading coins.

Meanwhile, short-term holders (STHs) are back in accumulation mode — a pattern often seen near market tops.

This same dynamic was observed in April 2021 and November 2023, both of which were followed by local peaks or pullbacks.

🧠 What Does It All Mean?

✅ On-chain activity supports the price surge — a good sign for sustainable growth.

⚠️ Holder rotation could hint at short-term cooling or a shift in market control.

Traders should stay alert: the fundamentals look healthy, but history shows that sharp rallies often come with shakeouts.

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