Bitcoin: How This Historical Pattern Could Push BTC to $220
Bitcoin (BTC) is still bullish and could cross $200,000 in the near future as the coin reverses a previous pattern on the charts.
BTC appears to be following the path of previous bullish cycles from 2017 and 2020, which could pave the way for a major price surge.
Long-term holders were expected to play a pivotal role at this stage, contributing to the upward price momentum.
Bitcoin (BTC) has held above the psychological $100,000 level for several days, despite broader market declines after its all-time high of $108,000.
Over the past week, BTC has struggled to maintain its monthly profitability, posting modest gains of 0.64%. In the past 24 hours, it has registered a 2.05% increase.
According to BinanceCrypto, these fluctuations could be part of a broader rally, as BTC moves towards new record highs.
BTC to $220,000: A Cautious Journey Ahead
BTC has been reversing the historical patterns of its 2017 and 2020 bull cycles, indicating a potential market peak at $220,000, according to crypto analyst Ali Chart.
As BTC follows this path, it is expected to face three major resistance levels, where selling pressure may arise before resuming its upward momentum.
The ongoing market decline appears to be in line with this broader structure, progressing towards these critical areas.
Source: X
Mark on the chart the potential price landmarks:
“If Bitcoin (BTC) behaves like it did in 2017 and 2020, there will be a short correction after hitting $110,000, a sharp correction after hitting $125,000, a big correction at $150,000, and the end of the bull market.”
AMBCrypto’s analysis suggests that these corrections will likely be influenced by long-term holders, who are currently contributing to BTC’s downward movement.
Long term holders drive distribution in the market.
According to Glassnode, market distribution patterns shifted significantly after BTC reached a new high, crossing into the $90,000 range in mid-November.
During this period, long-term holders (LTHs) initiated a large sell-off, taking profits and driving market activity. These sell-offs accounted for 54% to 70% of trading volume, equivalent to $73–$117 million per hour.
It is worth noting that a certain segment of the market has been at the forefront of this profit-taking trend.
Source: X
Further analysis reveals that the activity is largely driven by BTC holders who have held their positions for 6 to 12 months. This group, many of whom accumulated during the last market cycle, has been responsible for the majority of profit-taking in recent weeks.
The Spent Profit Ratio (SOPR) for these regiments mirrors the 6- to 12-month trailing trend observed during the 2015-2018 bull market. At that time, the SOPR remained below 2.5 throughout large portions of the cycle.
Source: X
If history repeats itself, BTC could soon enter an exhaustion phase where profit-taking slows down and buying activity resumes. This shift is likely to lead to a renewed rally in BTC prices, as we have seen in previous cycles.
BinanceCrypto notes that profit-taking and exhaustion patterns may continue as BTC hits new price milestones.
These stages are expected to lead to corrective moves before further rallies. Potential price corrections could occur at key levels, including $110,000, $125,000, and $150,000.
