The data suggests that Bitcoin will rally to $120K.

The key takeaways 

• Bitcoin inflows have fallen to 5,147 BTC on Binance, which is less than half the previous bear-market levels. BTC has traded above $105,000. This could indicate a short-term decline in selling pressure.

• Bitcoin has reclaimed the 50-day EMA. This is a historically reliable signal of breakout rallies. Technical indicators such as rising CVD point to strong demand at the spot and potential upward movement towards $120,000.

BitcoinBTCInflows and Outflows (on Binance) can provide insights on market sentiment. Data from CryptoQuant pointed Binance’s BTC 30-day moving-average (DMA), inflows dropped from 5,147 BTC to just 5,147 BTC, despite the prices comfortably trading above $100,000 on June 24. It is true that the BTC 30-DMA flows in December of 2024 was around three-times higher with 13,200 BTC in late Dec. 5 when Bitcoin valued under $100,000. 

Inflows, on the other hand, can be a direct reflection of investor behaviour, particularly during periods when investors are derisking or taking profits. In the past, spikes have been associated with increased inflows. BTC inflows The tops of local markets have preceded short-term and mid-term corrections. The FTX collapse of late 2022 was a good example, as monthly BTC flows surged up to 24,000 BTC. This was due to panic buying.

The latest data, however, paints an entirely different picture. Binance has seen monthly inflows plunge below bear-market benchmarks despite Bitcoin’s trading over $105,000. The monthly BTC inflows to Binance are less than half of the levels experienced during the FTX, and they’re significantly below the 12,000 BTC average recorded every month since 2020.

Bitcoin researcher Axel Adler Jr. added Saying that there is more to BTC’s current inflows than outflows,

“The inflow/outflow ratio (Inflow/Outflow 30-day SMA) remains at a high level, comparable to the end of 2023 -beginning of the bull market, which indicates still strong demand for BTC.”

This sharp decline in investment flows strongly indicates that investor strategies have changed. Market participants are holding on to their coins rather than selling into the strength. This indicates a decrease in pressure to sell.

However, the overall environment is still complex. Any bullish trend must be approached cautiously due to the market’s response to current macroeconomic and geopolitical uncertainty. Although the data indicates a more long-term and confident investor, prices could still be affected by external shocks.

Related: Bitcoin price analysis now sees up to $111K liquidity grab next

Bitcoin’s reclaiming of the 50-day EMA may trigger a rally up to $120,000

Ibrahim Cosar, a crypto trader said that Bitcoin’s recent rise above its exponential moving average of 50 days may have set up a rally towards $120,000.

Cosar believes that the 50-day EMA is a technical key level which has traditionally acted as a strong support in corrective phases of uptrends. Cosar noted a pattern in which brief dips beneath this level are followed by swift recoveries that show bullish breaks of 10 to 20 percent. The analyst added, 

“After the recent pullback, Bitcoin briefly closed below the 50-day EMA but has now posted three consecutive daily closes above it. This reclaim is typically a bullish signal, and we’re seeing a similar setup that has triggered major upward moves in the past.”

Also, Crypto Commentator IT Tech pointed It is evident that BTC bulls, fueled by the rising cumulative volume Delta (CVD), are on top. The CVD (cumulative volume delta) indicator is used to measure over time the change in the buying pressure and the selling pressure by using aggregated data. As seen, a rising CVD is a sign of strong spot BTC demand, as prices hover around $108,000. 

Related: Bitcoin ETFs log biggest June inflows at $588M, extend 11-day streak

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.