NewsBTC recently reported that Bitcoin’s impressive price gains could see it peak at a massive $120,000. This comes after the asset’s value increased by 37.5% since mid-April, hitting a high of $105,490. However, the rise is conditional, according to respected crypto analyst Ali Martinez.
Martinez believes that Bitcoin’s top market value during this bull cycle could reach $120,000, based on the Cumulative Value Days Destroyed (CVDD). This on-chain metric gauges spending activity of long-term holders by tracking the total coin-days destroyed when dormant Bitcoin moves. A rise in CVDD usually signifies profit-taking by long-term holders, indicating an overheated market, while decreased CVDD indicates accumulation phases.
Renowned analytics firm CryptoQuant uses the CVDD to produce multiple layers, each representing different aspects of the bull market. The Accessing Tops layer, the black line, is currently around $120,000, suggesting this could be the next market peak. Another crucial layer is the Accumulating Phase 2, positioned at $90,000, acting as the first significant support line for bulls.
As Bitcoin’s price hovers around $103,242, Martinez warns that maintaining the $90,000 price support is crucial for Bitcoin’s bull structure and a potential climb to $120,000.
At the time of writing, Bitcoin is trading at $103,573, with a slight market gain of 0.09% in the past day. According to Martinez, major positive developments will only occur if the price closes above $107,000. Bullish sentiments remain high, as demonstrated by the Bitcoin Spot ETFs, which registered a net inflow of $1.81 billion in the past week.
With a market cap of $2.04 trillion, Bitcoin maintains its position as the most valuable digital asset, holding about 62.8% of the crypto market.
