CryptoQuant analyst Axel recently emphasized a significant trend in the Bitcoin market dynamics during the current bull market. Data shows that long-term holders (LTH) have been steadily accumulating Bitcoin before a substantial price increase. Historically, this pattern first appeared around $28,000, when the ratio of LTH to short-term holders (STH) continued to rise, followed by a price surge to $60,000.
The second notable accumulation phase occurred during the consolidation period near $60,000, laying the groundwork for Bitcoin's next rise to $100,000. Currently, at the critical threshold of $100,000, the LTH/STH ratio continues to climb, indicating that the accumulation phase could persist for another 4 to 8 weeks. This behavior aligns with previous cycles, reinforcing the likelihood of a strong upward trend.
Applying a conservative multiplier of 1.6 to this pattern, market predictions for Bitcoin's next significant price target are around $160,000. These insights underscore the importance of monitoring the composition of holders as a key indicator of future price movements in the cryptocurrency market.
