Key takeaways
Is Bitcoin’s rally sustainable?
Yes, long-term holders are back in profit and network activity is surging.
What do the charts say?
Momentum is bullish but needs stronger buying pressure to clear $120,000.
Is Bitcoin [BTC] flexing again?
Long-term holders are back in profit ahead of the short-term crowd. Add to that the busiest network activity we’ve seen all year, and the case for a new bull phase is harder to ignore.
But will this strength carry momentum into the months ahead?
LTHs are back in the game again
The balance of power in Bitcoin’s market is shifting back toward LTHs; a trend that has marked the start of major rallies.
The SOPR ratio is trending upward, showing that patient investors are now more in profit than fast movers.
In past cycles, this shift has reduced selling pressure and supported stronger price moves.
Source: CryptoQuant
When LTHs hold the advantage, Bitcoin tends to build more sustainable rallies. If the trend holds, a surge to $120,000 may take shape.
Network activity surges to YTD high
Bitcoin’s network is experiencing peak activity, with the 14-day Moving Average of transactions reaching a yearly high of approximately 540,000 at press time.
This surge is partly driven by increased usage of protocols like Ordinals and Runes.
More importantly, the latest rally is backed by a real pickup in usage.
Source: CryptoQuant
Since July, price and transaction activity have moved in tandem, that adds weight to Bitcoin’s current uptrend. If this pace of on-chain activity holds, it could provide the solid foundation needed for the next leg higher.
BTC: Cautious optimism
At the time of writing, Bitcoin traded at around $115,988, holding steady after a modest recovery.
The daily chart showed consolidation near the upper Bollinger Band, a sign of cooling momentum. The RSI was near 56, while the MACD stayed in positive territory; but there could be a potential slowdown.
Source: TradingView
Volume was indicative of trader indecision. Overall, while the broader structure stayed bullish, BTC might need stronger buying pressure to push convincingly toward the $120,000 mark.
