Bitcoin is showing a recovery after reclaiming its 50-day EMA, which may signal further growth towards $120,000.
Bitcoin Price Holds Above Key Technical Level
As of now, Bitcoin is trading at $106,918, up 1.37% in the last 24 hours and 1.52% over the past seven days. Analysts point towards a possibility of moving towards the $120,000 level. CryptoQuant analyst Ibrahim Coşar explained that historically, when Bitcoin drops below the 50-day EMA and quickly regains it, the market typically observes a short-term rally of 10% to 20%. Over the last three days, Bitcoin has maintained closes above this technical line, indicating strong short-term support.
Exchange Flows Signal Accumulation
Data shows a decline in Bitcoin movement on centralized exchanges. Analyst Axel Adler noted that the average flow volume (inflow plus outflow) has dropped to 40,000 BTC per day—the lowest in a decade. This suggests that a large proportion of Bitcoin has been withdrawn from trading platforms, possibly indicating growing long-term holding behavior. Additionally, while the inflow/outflow 30-day moving average ratio remains elevated, it reflects ongoing demand for Bitcoin despite reduced exchange activity.
Geopolitical Factors and Market Impact
Despite positive technical and on-chain trends, analysts continue to monitor geopolitical developments closely. Escalations involving the U.S., Israel, and Iran could inject sudden volatility into the market.
Bitcoin has shown recovery at the 50-day EMA, indicating potential growth ahead. However, declining trading volumes and geopolitical instability remain significant factors for further market analysis.
