3 Signs Bitcoin Could Be Ready for Another Pullback

Bitcoin trades around $64,000, up 0.56% in the last 24 hours despite Strategy’s third Bitcoin sale this year. However, several on-chain and market signals imply that the top cryptocurrency may get hit with more selling pressure in the near-term.

Exchange Inflows and Miner Selling Raise Caution

Crypto analyst Ali Martinez says that in the past week more than 20,000 BTC, worth over $1.2 billion, have moved toward cryptocurrency exchanges. CryptoQuant data shows that exchange reserves are now roughly at 2.72 million BTC, which is the highest since early July.

Martinez noted, "When coins move onto trading platforms, it often signals rising sell-side pressure. Keep an eye on this trend."

While higher exchange balances are often interpreted as a precursor to selling, recent security concerns surrounding the ColdCard wallet incident may also be encouraging some investors to temporarily move assets from self-custody into centralized exchanges without intending to sell.

Another bearish signal comes from Bitcoin miners. According to Martinez, miners have sold approximately 1,774 BTC, valued at roughly $112 million, during the past week. Miner selling is often viewed as profit-taking and can increase short-term supply entering the market.

Seasonal Trends Keep Traders on Alert

Bitcoin's historical performance also adds uncertainty. Market data shows the cryptocurrency has finished August in negative territory nine out of the past thirteen years, making it one of Bitcoin's weaker seasonal months.

Market opinions remain divided. Some analysts expect additional downside before a sustained recovery. Rekt Fencer suggested a potential bull trap could drive Bitcoin toward $30,000 later this month.

According to Ali Martinez, a decline toward $60,000 could actually strengthen Bitcoin's technical outlook by confirming an inverse head-and-shoulders pattern, potentially setting the stage for a rally toward $74,000. Crypto analyst MikybullCrypto also believes the bullish setup has already formed, stating, "Breakout is next. $80K is the magnet target."

Also Read: Bitcoin Security Faces New Questions After the Coldcard Wallet Hack

Technical Structure 

Bitcoin price is currently hovering around $64,038 on Wednesday with a slight downward trend, and is trapped between a dense range of Exponential Moving Averages (EMAs). BTC is struggling to move above the 50-day EMA near $64,650.

The Relative Strength Index (RSI) is sitting around 50.50 on the daily time frame, indicating no real conviction for an upside move today. The Moving Average Convergence Divergence (MACD) remains under the zero line, with a mild downward bias; it suggests price is still in a downtrend.

For the upside, immediate resistance is near $64,650 at the 50-day EMA. A break above $64,650 would lift the downside pressure for a leg toward the 100-day EMA at $67,079, followed by the 200-day EMA at $72,649. On the downside, support is seen at $64,004; a break below this support could drag the asset into a deeper corrective trend.

FAQs:

1. Why are rising Bitcoin exchange inflows considered bearish?

When large amounts of Bitcoin move onto exchanges, it often signals that investors may be preparing to sell. Higher exchange balances can increase available supply, creating short-term selling pressure if demand does not keep pace.

2. Why does miner selling affect Bitcoin's price?

Bitcoin miners periodically sell a portion of their holdings to cover operational costs or lock in profits. Increased miner selling adds fresh supply to the market, which can weigh on prices during periods of weak buying demand.

3. What does Bitcoin's RSI currently indicate?

The Relative Strength Index (RSI) is hovering around 50.50, suggesting neutral momentum. It indicates that neither buyers nor sellers currently have strong control, leaving Bitcoin vulnerable to movement in either direction.

4. Which technical levels should Bitcoin traders watch?

Immediate resistance is near the 50-day EMA at $64,650. If Bitcoin breaks above this level, the next upside targets are the 100-day EMA near $67,079 and the 200-day EMA around $72,649. On the downside, key support lies near $64,004.

5. Does a short-term pullback mean Bitcoin's long-term trend has turned bearish?

Not necessarily. Short-term corrections are common in crypto markets. Some analysts believe a pullback toward $60,000 could strengthen Bitcoin's longer-term bullish structure by confirming a potential inverse head-and-shoulders pattern before another upward move.