Bitcoin (BTC) is facing growing concerns over a potential price correction after a notable increase in exchange inflows. In the last 96 hours alone, more than 21,000 BTC have been moved to exchanges, marking a significant rise in exchange reserves. Historically, such inflows tend to signal rising sell-side pressure, especially when traders believe the market may be nearing a local top. As Bitcoin hovers around the $83,700 mark, many are wondering if these increased inflows will trigger a pullback or if bullish momentum will prevail.

Bitcoin’s Bullish Pattern

On the 4-hour chart, Bitcoin is forming a classic cup and handle pattern, which is traditionally seen as a bullish continuation signal. As of now, BTC is trading at $85,138.04, showing a modest gain of 1.02%. The neckline of the cup and handle pattern is situated at the $88,860 level, which is a key resistance zone that Bitcoin must break through to confirm a potential breakout. If Bitcoin manages to clear this resistance, it could ignite a wave of buying pressure, pushing the price to new highs.

However, this pattern is not yet complete, as the handle portion is still developing. The next few hours and days will be critical in determining whether Bitcoin can maintain its bullish outlook or if it will struggle to gain further momentum. If the bulls fail to build enough strength, Bitcoin could experience a pullback toward the $81,535 support level, which has been a reliable zone during previous dips.

Weakening Momentum and Declining Activity

At press time, market sentiment remains uncertain, with bulls and bears in a near perfect equilibrium. This suggests that the market is in a state of indecision, where any small event could cause sharp price movements in either direction. One concerning sign is the significant drop in Bitcoin’s network activity, which is approaching historic lows not seen since 2018 and 2021. This decline in on-chain engagement could be indicative of reduced user demand and weak market participation.

However, if Bitcoin sees a resurgence in volume or continued institutional buying, this trend could reverse. The market’s ability to recover quickly from this dip in activity will largely depend on the actions of large investors and the broader market sentiment in the coming days.

Whale and Institutional Buying

Despite the growing exchange inflows, whale activity and institutional buying continue to show strong support for Bitcoin. Data from Glassnode reveals that wallets holding over 10,000 BTC have been accumulating more Bitcoin, pushing the accumulation score close to 0.6. Tether, a prominent stablecoin issuer, has also been actively purchasing Bitcoin, acquiring $750 million worth of BTC in 2025 and holding over 100,000 BTC. Bitwise, a prominent asset management firm, has also joined the buying spree with a $24.5 million purchase.

These whale and institutional purchases signal strong long-term confidence in Bitcoin, even as short-term volatility looms. The increasing accumulation by large players suggests that they view the current market conditions as a strategic buying opportunity, despite the risks of short-term corrections.

The Stock-to-Flow Ratio

Another factor to consider is the recent drop in Bitcoin’s stock-to-flow ratio, which measures scarcity by comparing the circulating supply to the rate of new issuance. The ratio has dropped 71.43% in the past 24 hours, sitting at 907.2K at press time. While a drop in this metric can suggest either market saturation or temporary doubts about scarcity as a value driver, many investors still see current levels as a favorable buying opportunity.

Conclusion

While a short-term price correction appears likely due to the rising exchange inflows and weakening network activity, Bitcoin’s bullish long-term outlook remains intact. Whale accumulation and continued institutional buying provide a solid foundation that could limit any downside risk. Although short-term volatility may persist, the broader structure points to sustained confidence in Bitcoin’s future, making any pullbacks potentially short-lived and setting the stage for further growth.