Bitcoin Breaks Above $120K: Real Momentum or Caution Ahead?
Bitcoin is back on the rise! After a shaky start to the week, the cryptocurrency surged and has remained above $120,000 in the past 24 hours. But what’s fueling this move? Is it just speculation — or is something more solid at play?
📊 On-Chain Activity Signals Real Strength
According to data from CryptoQuant, the NVT Golden Cross — a metric that compares market value to network activity — is dropping even as the price climbs. This is typically a positive sign.
Analyst Sunflowr Quant explains that this behavior shows real growth on the Bitcoin network. In simple terms, people are actually using Bitcoin, not just buying it for speculation.
“When the NVT ratio declines while price rises, it means transaction volume is increasing faster than market cap. This signals a healthier rally,” says Sunflowr.
🔄 Investor Behavior Is Shifting
Another important factor: long-term holders — those holding BTC for over 155 days — are starting to sell. Meanwhile, short-term holders are accumulating again.
This shift was also observed in April 2021 and November 2023, both followed by local price peaks or cool-off periods.
Analyst IT Tech notes this pattern is worth watching, but not a guaranteed sign of reversal.
“It’s crucial to monitor support metrics like exchange inflows and funding rates,” he adds.
💡 Bottom Line: Is This a Sustainable Rally?
Everything suggests that Bitcoin’s recent surge is backed by solid fundamentals — increasing network usage and user adoption.
Still, changes in holder behavior call for attention.
🔍 Staying informed on on-chain metrics and market sentiment is key.
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