Bitcoin ($BTC) is at a crucial moment in the market, aiming to achieve $120K. Despite a decline in inflows to cryptocurrency exchanges, there is a bullish sentiment among investors.
Decline of Bitcoin Inflows on Binance
Recent data shows that Bitcoin inflows to Binance have dropped to 5,147 $BTC, which is less than 50% of the levels seen during previous bear markets. This decline has occurred even as Bitcoin trades above the $107K mark. Last December, when Bitcoin was below $100K, its 30-day moving average inflows reached 13,200 $BTC. The current decrease indicates that investors are more inclined to hold and buy than to sell.
Bullish Signals and $120K Target Price
Historical data indicates that surges in Bitcoin inflows into centralized exchanges have preceded short-term market peaks due to increased selling pressure. For instance, during the FTX collapse in 2022, inflows surged to 24K $BTC, signaling panicked liquidation from investors. In contrast, the current decrease in inflow levels reflects a reduced desire to convert $BTC into cash, denoting long-term confidence in the cryptocurrency. Additionally, Bitcoin has successfully reclaimed the 50-day exponential moving average, fueling speculation of a bullish breakout.
Community Sentiment on Bitcoin's Future
If the ongoing bullish momentum continues, Bitcoin ($BTC) could reach its next target at $120K, further supported by growing optimism within the community.
Thus, amid declining inflows to exchanges and a recovery in technical strength, Bitcoin may anticipate significant growth in the near future.
