$120,000 Still Achievable for Bitcoin, On-Chain Data Shows

Bitcoin price has been largely sideways since recovering from Friday's market crash, struggling to overcome resistance at $115,892 while finding support near $111,098.

Despite the lackluster price action, two analysts have identified bullish signals that could lead to a price recovery towards $120,000 in the short term.

Increased Binance Flow Supports Bitcoin's Bullish Structure

CryptoQuant analyst PelinayPA noted that Bitcoin’s market structure remains intact and continues to show signs of strength despite recent setbacks.

One of the main supporting factors, according to the report, was an increase in Binance inter-exchange flows, an index that tracks Bitcoin transfers between major exchanges.

When evaluated on the 7-day moving Medium , CryptoQuant data shows it has increased by 125% over the past seven days.

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When flows between exchanges increase, this indicates increased activity among large traders, institutions, or market making entities moving funds between major exchanges.

“Since the beginning of October, these flows have increased again, implying renewed activity from large players. However, since these are inter-exchange transfers and not inflows, they are considered neutral to slightly positive, suggesting that spot holdings are being redistributed rather than sold,” PelinayPA noted.

The analyst said this behavior shows liquidation redistribution rather than capitulation, a healthy sign for market stability.

“After the sharp drop on October 11, 2023, Bitcoin recovered quickly and steadily around $110,000. The volume of flows during that sell-off was significantly lower than current levels, suggesting that the latest moves reflect a more organic and healthy recovery. Technically, the likelihood of a retest of the October 11, 2023 low is low. The price structure continues to form higher Dip , with no obvious signs of losing momentum.”

The analyst added that Bitcoin could test the $115,000 resistance zone if the bullish momentum is sustained. A confirmed breakout above $115,000–$120,000 could trigger a new bullish wave.

Accumulation by short-term holders shows new confidence of retail investors

Another anonymous CryptoQuant analyst, Crazzyblockk, Chia the optimistic view in another report , highlighting the increase in BTC holdings by short-term investors.

According to the analyst, while Friday's liquidation event caused “significant desperation and widespread reluctance among traders to commit to heavily leveraged positions in the futures market,” there was a strong accumulation trend among Short-Term Holders (STHs).

“A key on- chain metric — the supply held by New Investors (or Short-Term Holders, STHs, generally defined as those holding coins for less than 1 month) — is flashing a deeply bullish signal: rapid accumulation is underway.”

He added that this new buying activity marks a significant shift in sentiment after the recent market downturn.

“As confirmed by fundamental index data, this group of new entrants has rapidly increased their Bitcoin holdings, with the STH supply increasing by a significant amount in a short period of time. For example, recent figures show that the supply increased from approximately 1.6 million BTC to over 1.87 million BTC in just a few days. This represents a significant injection of Capital and new demand after the price drop,” the analyst wrote.

Bitcoin's Next Move: Above $115,000 or Below $111,000?

Both reports show that BTC 's on chain activity is quietly strengthening even as price action remains range-bound. Institutional flows and fresh retail accumulation could create conditions for a rally above $115,892 in the short term.

A successful break above this resistance could open the doors for a rally towards $120,144.

However, if this buying trend stalls, BTC could extend its accumulation phase or even drop below $111,098.