Bitcoin News Today: Bitcoin rebounds 0.89% amid TD Sequential buy signal and accumulation trends

Bitcoin is showing early signs of a potential recovery following a TD Sequential 'Buy' signal near $113,500, which has triggered renewed bullish sentiment among traders and investors [1]. This signal, appearing on the 12-hour chart, is often seen as an indicator of a possible trend reversal and has been confirmed by analyst Ali Martinez, reinforcing the idea that Bitcoin could be at the start of a short-term upward move [1]. The price rebounded from this level and closed at $114,700, up 0.89% on the day [1].

Despite the positive price action, trading volume fell by 14% to $49.18 billion, highlighting a reduction in overall market participation [1]. However, this decline in volume does not detract from the improving market structure observed in technical patterns, such as the formation of a bullish inverted Head and Shoulders, which further supports the potential for a price rebound [1]. The price also moved above the lower boundary of a descending channel, signaling growing confidence among buyers [1].

Accumulation trends have also played a key role in the recent bullish momentum. Exchange outflows for Bitcoin reached $18.84 million in the last 24 hours, indicating that traders and long-term holders are buying during the dip [1]. Additionally, the Long/Short Ratio on Binance’s BTCUSDT pair rose to 1.54, meaning that 60.65% of open positions are long, suggesting a bias toward upward movement even without a confirmed breakout [1].

Institutional confidence is also evident. Metaplanet recently purchased 463 BTC, valued at $53.7 million, signaling strong medium-term conviction [1]. Such accumulation by institutional players adds further support to the idea that Bitcoin could see a short-term rally if it maintains its position above $114,000. Technical analysis suggests a potential 3.3% rally to $118,000 could be in play [1].

However, the market remains in a transitional phase. The Supertrend Indicator shows mixed signals, with a bearish outlook on the 4-hour chart and a bullish bias on the hourly chart [1]. This divergence suggests that while there is optimism, traders should remain cautious and watch for confirmation of a sustained upward move.

The broader market has followed Bitcoin’s lead, with Ethereum, XRP, and BNB all posting gains [2]. Ethereum has stabilized near $3,500 after a period of volatility, and Ethereum-based ETFs have seen stronger institutional inflows compared to Bitcoin ETFs [2]. Meanwhile, Bitcoin ETFs recorded a significant net outflow of -$812 million on August 1, the second-largest in history [2], which has raised concerns about investor sentiment amid macroeconomic uncertainty [2].

On-chain data also reveals liquidity clusters near $115,732, where both support and resistance walls exist [2]. A breakout above $115,850 could validate $112,000 as a potential support base, according to on-chain analyst BigMike7335 [2]. Open interest in Bitcoin futures has dropped to its lowest level since July 10, indicating a reduction in leveraged positions and possibly a shift toward accumulation [2].

Analysts remain divided on the near-term outlook. Some predict a short-term pullback could find support near $110,500 [2], while others are optimistic about a renewed bullish phase driven by ETF inflows and reduced volatility [2]. The market's attention is now shifting between Bitcoin and Ethereum, with Ethereum-based ETFs capturing more institutional capital [2].

As Bitcoin approaches key resistance and support levels, the coming weeks will be critical in determining whether the recent gains can be sustained or if the market will face renewed selling pressure. Investors are advised to closely monitor liquidity zones, ETF flows, and institutional positioning as key factors that could shape the cryptocurrency's trajectory [2].

Source:

[1] https://en.coinotag.com/bitcoin-shows-potential-for-recovery-bounce-amid-accumulation-and-mixed-technical-signals/

[2] https://leapdigitalinvestments.com.au/