Bitcoin has seen significant increases in value in recent weeks, bouncing back from a dip below $75,000 in mid-April to levels as high as $105,490—a rise of over 37.5%. While the market seems to be stabilizing, well-respected crypto expert Ali Martinez predicts that Bitcoin could reach a market high of $120,000 in the current bull cycle, if it maintains support at $90,000.
The Cumulative Value-Days Destroyed (CVDD) is an on-chain metric which evaluates the total coin-days destroyed when dormant Bitcoin is moved, thereby reflecting the spending habits of long-term holders. A rise in CVDD can indicate significant profit-taking by these holders, often a sign of an overheated market, while decreased CVDD suggests accumulation phases.
According to the chart Martinez provided, leading analytics company CryptoQuant projects Bitcoin’s current CVDD at $34,154 into several layers, each symbolizing different elements of the bull market. The ‘Accessing Tops’ line, for example, extends the CVDD to an upper band that the price has hit at major peaks—currently around $120,000. This suggests the next market peak could be at this level.
Another key layer in CryptoQuant’s CVDD projection is the ‘Accumulating Phase 2’, a support band that has consistently underpinned the price. Currently positioned at $90,000, this represents the first major support level for the bulls.
At the moment, Bitcoin is trading at $103,242. Martinez emphasizes that maintaining the $90,000 support level is crucial for Bitcoin’s bull trend, potentially paving the way for a rise to $120,000.
As of writing, Bitcoin trades at $103,573, a modest market gain of 0.09% from the previous day. However, daily trading volume has dropped by 17.92%, signaling a decrease in market activity. The next resistance level is expected to be around $105,000, but Martinez asserts that a meaningful rally will only occur if the price closes above $107,000. Despite these challenges, bullish sentiments remain buoyant, as demonstrated by the Bitcoin Spot ETFs’ strong performance, with a net inflow of $1.81 billion over the past week.
With a market capitalization of $2.04 trillion, Bitcoin continues to be the most valuable cryptocurrency, comprising about 62.8% of the crypto market.
