Key Takeaways
Bitcoin bounced from $113.5K after a TD Sequential ‘Purchase’ sign, Lengthy/Brief Ratio hit 1.54, and $18.84 million in Change Outflows pointed to accumulation.
Bitcoin [BTC] seemed primed for a restoration bounce on the 4th of August after briefly reclaiming the decrease boundary of its Descending Channel Sample.
This got here on the heels of a TD Sequential purchase sign flashing on the 12-hour chart—an indicator typically used to time pattern reversals.
Quantity dips, however construction improves
BTC was final seen buying and selling close to $114,700, logging a modest 0.89% intraday achieve. Nonetheless, 24-hour buying and selling quantity slipped by 14%, falling to $49.18 billion, as per CoinMarketCap.
The decline in participation appeared at odds with the technical upside brewing beneath.
Nonetheless, the market’s underlying construction confirmed indicators of enchancment.
BTC had shaped a bullish inverted Head and Shoulders Sample alongside the channel’s base. Value additionally climbed again above this key degree—signaling that merchants is perhaps shopping for the dip, not fading the bounce.
Supply: TradingView
Can a 3.3% rally materialize?
Naturally, value targets are already on the desk. In line with AMBCrypto’s technical setup, if BTC sustains momentum above $114,000, it may rally as much as $118,000, a projected 3.3% transfer.
The above TradingView chart backs this view, illustrating the identical channel breakout with a bounce play unfolding.
Nonetheless, the Supertrend Indicator remained conflicted. On the four-hour chart, it hovered above value and crimson (bearish), whereas on the hourly timeframe, it flipped under value and inexperienced (bullish).
The takeaway? BTC should be in a transitional chop zone moderately than a clear uptrend.
Purchase sign confirmed by analyst
In the meantime, crypto analyst Ali Martinez amplified bullish sentiment.
In a publish on X, he confirmed that the TD Sequential Indicator had printed a ‘Purchase’ sign on BTC’s 12-hour chart—probably paving the way in which for a short-term pattern reversal.
This was visually supported by a 9-count formation and value bounce close to $113.5K.
Supply: X (Previously Twitter)
On high of that, Binance’s BTCUSDT Lengthy/Brief Ratio hit 1.54, per Ali’s knowledge.
Supply: X
This means that 60.65% of open positions are presently lengthy—an indication that merchants are positioning for upside, even when value hasn’t decisively confirmed a breakout.
Bitcoin accumulation soars
Given the present market sentiment, merchants, buyers, and long-term holders look like accumulating the token, as per CoinGlass.
Knowledge revealed that exchanges have recorded an outflow of $18.84 million price of BTC over the previous 24 hours, suggesting potential accumulation and elevating the query of a super shopping for alternative.
Supply: CoinGlass
Moreover, establishments like Metaplanet have bought 463 BTC for $53.7 million, seizing the present dip.
This means that each buyers and establishments are profiting from the value drop, a bullish signal for Bitcoin that will help a restoration within the coming days.