Community Trust ScoreVerified
Bitcoin [BTC] is once again showing signs of resilience. After briefly dipping below $114,000, the asset reclaimed support near $113.5K, triggering renewed interest from both traders and long-term holders.
Data from CoinGlass and market charts now point to a potential bounce scenario—highlighted by rising long positions and nearly $19 million worth of BTC flowing out of exchanges in a single day.
TD Sequential Flashes Buy Signal
On August 4, BTC regained the lower boundary of its Descending Channel—a technical structure it had been trading within for weeks. That recovery coincided with a fresh TD Sequential buy signal on the 12-hour chart, an indicator often used by traders to identify potential price reversals.
A nine-count formation and bounce from the $113.5K zone added strength to the signal. Historically, such patterns have preceded short-term rallies, especially when combined with structural support zones.
Trading Volume Slips but Structure Holds
At the time of writing, Bitcoin was trading near $114,700, marking a 0.89% gain over the previous 24 hours. However, 24-hour trading volume slipped 14%, down to $49.18 billion, suggesting a pause in market participation.
Despite lower volume, BTC’s chart pattern revealed a bullish inverted Head and Shoulders near the channel base. This typically suggests a potential bottoming process, particularly when followed by a price reclaim of prior support levels.
Can BTC Rally 3.3% Toward $118K?
Technical analysts at AMBCrypto suggest that if BTC holds above $114,000, it could rally toward $118,000—a projected 3.3% move from current levels.
The idea is further supported by TradingView’s breakout analysis, which points to the same price zone as a likely target if buyers continue stepping in.
However, the Supertrend Indicator tells a mixed story. On the 4-hour timeframe, it still appears bearish (red and above price), while on the 1-hour chart, it’s flipped bullish (green and below price). This may indicate short-term indecision or “chop” rather than a clean bullish breakout.
Long Positions Build on Binance
According to crypto analyst Ali Martinez, the same TD Sequential setup confirms a potential trend reversal. On X (formerly Twitter), Martinez posted the signal chart, highlighting the 9-count setup that aligns with historical bounce points.
In addition, Martinez noted that the BTCUSDT Long/Short Ratio on Binance climbed to 1.54. That means nearly 61% of open positions are long, signaling that traders are now positioning for further upside despite the lack of a full confirmation.
This rise in long exposure suggests bullish bias, even if broader market momentum remains cautious.
$18.84M in Bitcoin Pulled from Exchanges
Supporting the bullish argument is the significant exchange outflow. According to CoinGlass, roughly $18.84 million worth of Bitcoin was withdrawn from centralized exchanges in the last 24 hours.
Large-scale BTC outflows are often interpreted as a sign of accumulation, as tokens moving off exchanges may indicate intent to hold, not sell. When combined with the recent price action and technical signals, this trend adds weight to the recovery narrative.
Institutions Join the Accumulation
Further evidence of investor confidence came from institutional activity. Japan-based firm Metaplanet reportedly acquired 463 BTC worth $53.7 million, taking advantage of the recent dip.
This type of move from a corporate treasury suggests that institutional buyers are not only watching but acting on current price weakness.
Over the past few months, companies like Metaplanet and MicroStrategy have continued accumulating BTC on market dips, adding to the thesis that large players view Bitcoin’s price below $120K as a buying opportunity.
Final Thoughts
The combination of a technical buy signal, long-position bias, and significant exchange outflows suggests Bitcoin may be setting the stage for a short-term recovery. The key level to watch remains $114,000. Holding above this zone could unlock a path toward $118K in the coming days.
Still, traders should remain cautious as conflicting signals like the Supertrend Indicator show that momentum hasn’t fully turned. Until a decisive move clears the descending channel, Bitcoin may continue to trade within a volatile range.
But for now, the presence of institutional buying and signs of accumulation hint that big buyers may be stepping back in.
