Bitcoin is showing signs of a classic bullish pattern amid concerns of a potential correction due to a spike in exchange inflows. Despite this short-term volatility, whale accumulation and institutional buys indicate strong long-term confidence in the cryptocurrency. Over the last 96 hours, over 21,000 Bitcoin have been transferred to exchanges, signaling growing sell-side pressure as traders anticipate local tops. The market is closely watching to see if these inflows will trigger a correction or if bullish forces will prevail.
On the 4-hour chart, Bitcoin appears to be forming a cup and handle pattern, traditionally a sign of potential bullish continuation. At the time of writing, BTC was trading at $85,138.04 with a modest 1.02% gain. The key resistance zone to clear for a breakout is at the $88,860 level, with a move above triggering a wave of buying pressure and potentially leading to new highs. While the pattern is not yet complete and the handle portion remains sensitive to broader market sentiment, failure to build enough momentum could see Bitcoin pull back to the $81,535 support level.
Market sentiment is currently divided, with bulls and bears evenly matched over the past seven days, indicating deep uncertainty where any minor event could tip the scales. Bitcoin’s network activity has dropped significantly, approaching historic lows seen in 2018 and 2021, reflecting reduced user demand and weak market participation. However, renewed volume or institutional buying could quickly reverse this decline. Despite rising exchange reserves, whales and institutions have been accumulating aggressively, with wallets holding over 10,000 BTC increasing their holdings and Tether and Bitwise making significant purchases.
The stock-to-flow ratio, a metric that evaluates scarcity by comparing circulating supply to the rate of new issuance, has dropped by 71.43% in the past 24 hours, indicating possible market saturation or temporary doubt in scarcity as a value driver. Despite this drop, many investors still see current levels as a strategic buying opportunity. In conclusion, a short-term correction may be on the horizon due to rising exchange reserves and weakening network activity, but strong whale accumulation and institutional buying provide a solid cushion to limit any downside. While short-term volatility may persist, the broader bullish structure and long-term outlook for Bitcoin remain intact.
