Bitcoin Inflows Drop 50% on Binance Amid Bullish Technical Signals

Bitcoin inflows on Binance have dropped to 5,147 BTC, less than half of previous bear market levels, despite BTC trading above $105,000, signaling a possible decline in short-term selling pressure. This drop in inflows suggests a shift in investor strategy, with market participants holding onto their coins rather than rushing to sell into strength. This behavior indicates a reduction in selling pressure and a more confident, long-term investor base.

Bitcoin has reclaimed its 50-day EMA, historically a signal for breakout rallies. Technical indicators, including rising spot CVD, point to strong spot demand and potential upside toward $120,000. Crypto trader Ibrahim Cosar noted that Bitcoin’s recent move back above its 50-day exponential moving average (EMA) may set the stage for a rally toward $120,000. The 50-day EMA remains a key technical level that has historically acted as strong support during corrective phases within uptrends. Cosar observed a recurring pattern where brief dips below this level, followed by quick recoveries, exhibit bullish breakouts of 10% to 20%.

Additionally, crypto commentator IT Tech pointed out that BTC bulls are in control, driven by a rising cumulative volume delta (CVD) spot indicator. The CVD indicator measures the net difference between buying and selling pressure over time by aggregating volume data to reveal the balance of market participant behavior. As observed, rising CVD signals strong spot demand for BTC, with prices around the $108,000 level.

However, the broader environment remains complex. The market’s reaction to geopolitical events and ongoing macroeconomic uncertainty means any bullish momentum must be cautiously approached. While the data hints at a more confident, long-term investor base, price action could still be vulnerable to external shocks.

Bitcoin researcher Axel Adler Jr. added more context to the current inflows and outflows in BTC, saying, “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 pronounced drop in inflows strongly suggests a shift in investor strategy. Rather than rushing to sell into strength, market participants appear to be holding onto their coins, signaling a reduction in selling pressure.