Bitcoin has shown spectacular bullishness, recapturing its 50-day Exponential Moving Average (EMA) and cruising above $105,000. This renewal, along with some other extremely bullish market signals, indicates we’re setting up for a powerful rally toward $120,000+. Analysts cite historical usage trends and the demand picture as major factors fueling this bullish sentiment.

As of writing, Bitcoin price is floating near the $108,000 mark after falling below $105,000 and quickly bouncing back. This swift reversal back above the 50-day EMA is an encouraging early sign. It rings true to prior occurrences where such rebounds ignited bullish breakouts of 10% to 20%.

Bitcoin’s increasing cumulative volume delta (CVD) spot indicator adds to the bullish narrative. The CVD proximity marker indicates that BTC bulls are currently in control. It also indicates robust spot demand as well as upside potential to $120,000.

"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.” - Ibrahim Cosar

Crypto trader Ibrahim Cosar argues that the fact that Bitcoin has climbed above its 50-day EMA could ignite a rally. He expects this momentum to continue increasing the price up to $120,000. In the past, recapturing the 50-day EMA has been a good breakout rally signal.

All this bullish price action and strong technical indicators can be misleading, as data shows a clear change in investor strategy. Monthly inflows to Binance, the largest centralized cryptocurrency exchange, have dropped to bear market level lows. These inflows still put us at less than half the panic levels we saw during the FTX collapse. Moreover, they are well below the average monthly inflow of 12,000 BTC that has persisted since 2020.

Bitcoin ETFs were on track to book their largest June inflows ever at $588 million, sitting on an 11-day inflow streak. This suggests institutional interest remains strong.

"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." - Axel Adler Jr.

BTC/USD marked as much as $111K liquidity grab next.