Binance BTC Inflows Plummet Below Bear Market Levels Despite $105K Price
Recapturing 50d EMA Fuels Potential Rally Towards $120K Target
Key Takeaways
- Binance BTC inflows decline to 5,147 BTC, below prior bearish benchmarks despite trading above $105,000, suggesting reduced short-term selling pressure.
- BTC reclaiming the 50-day EMA signals a potential breakout rally, supported by rising Spot CVD, pointing towards $120,000 price targets.
Binance Inflow Data Points to Reduced Selling Pressure
Despite Bitcoin trading above the $105,000 level, net inflows on Binance have dropped precipitously.
BTC’s 30-day moving average (DMA) inflows fell to a mere 5,147 BTC on June 24, according to CryptoQuant data. This figure represents less than half the inflows seen during last year’s bear market lows.
To contextualize the current level, CryptoQuant highlights that monthly inflows peaked above 24,000 BTC during the FTX collapse in late 2022, reflecting panic selling. The current level is also starkly lower than the average monthly inflow of 12,000 BTC recorded since 2020.
Market Sentiment Indicators
Bitcoin researcher Axel Adler Jr. recently commented on the inflow-outflow dynamics:
“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. This indicates still strong demand for BTC.”
BTC Strengthens Technical Position
Bitcoin has demonstrated renewed bullishness by reclaiming its 50-day Exponential Moving Average (EMA), a significant level historically associated with breakout rallies in uptrends.
Crypto trader Ibrahim Cosar analyzes the significance of this development:
“After the recent pullback, Bitcoin briefly dipped 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 setup that precedes major upward moves in the past.”
Furthermore, the Spot Cumulative Volume Delta (CVD) indicator reveals strong underlying buying pressure. The rising CVD suggests a net inflow of funds into spot market Bitcoin positions around the $108,000 price zone, reinforcing the potential for a sustained price increase.
Market Outlook and Caveats
While technical indicators suggest robust demand and potential for further upside, analysts caution against complacency.
Macro uncertainty and ongoing geopolitical developments persist, leaving price action vulnerable to shifts in the broader market sentiment. Any near-term bullish momentum must be viewed within this context.
Despite the signs of stabilizing sentiment and reduced selling pressure indicated by lower Binance inflows, market participants should remain vigilant to external factors.
