Bitcoin bounced from $113.5K after a TD Sequential Buy signal, Long/Short Ratio hit 1.54, and $18.84 million in Exchange Outflows pointed to accumulation.
Bitcoin [BTC] looked primed for a recovery bounce on the 4th of August after briefly reclaiming the lower boundary of its Descending Channel Pattern.
This came on the heels of a TD Sequential buy signal flashing on the 12-hour chartan indicator often used to time trend reversals.
Volume dips, but structure improves
BTC was last seen trading near $114,700, logging a modest 0.89% intraday gain. However, 24-hour trading volume slipped by 14%, falling to $49.18 billion, as per CoinMarketCap.
The decline in participation appeared at odds with the technical upside brewing underneath.
Still, the markets underlying structure showed signs of improvement.
BTC had formed a bullish inverted Head and Shoulders Pattern along the channels base. Price also climbed back above this key levelsignaling that traders might be buying the dip, not fading the bounce.
Source: TradingView
Can a 3.3% rally materialize?
Naturally, price targets are already on the table. According to AMBCryptos technical setup, if BTC sustains momentum above $114,000, it could rally up to $118,000, a projected 3.3% move.
The above TradingView chart backs this view, illustrating the same channel breakout with a bounce play unfolding.
However, the Supertrend Indicator remained conflicted. On the four-hour chart, it hovered above price and red (bearish), while on the hourly timeframe, it flipped below price and green (bullish).
The takeaway? BTC may still be in a transitional chop zone rather than a clean uptrend.
Buy signal confirmed by analyst
Meanwhile, crypto analyst Ali Martinez amplified bullish sentiment.
In a post on X, he confirmed that the TD Sequential Indicator had printed a Buy signal on BTCs 12-hour chartpotentially paving the way for a short-term trend reversal.
This was visually supported by a 9-count formation and price bounce near $113.5K.
Source: X (Formerly Twitter)
On top of that, Binances BTCUSDT Long/Short Ratio hit 1.54, per Alis data.
Source: X
This implies that 60.65% of open positions are currently longa sign that traders are positioning for upside, even if price hasnt decisively confirmed a breakout.
Bitcoin accumulation soars
Given the current market sentiment, traders, investors, and long-term holders appear to be accumulating the token, as per CoinGlass.
Data revealed that exchanges have recorded an outflow of $18.84 million worth of BTC over the past 24 hours, suggesting potential accumulation and raising the question of an ideal buying opportunity.
Source: CoinGlass
Additionally, institutions like Metaplanet have purchased 463 BTC for $53.7 million, seizing the current dip.
This indicates that both investors and institutions are taking advantage of the price drop, a bullish sign for Bitcoin that may support a recovery in the coming days.
