Bitcoin at a Crossroads: 3 Warning Signs Signaling an Imminent BTC Pullback
Bitcoin's bull run hits turbulence as critical indicators flash red. The king of crypto faces its first real test since last month's rally—and traditional finance vultures are already circling.
Liquidity crunch incoming?
Exchange reserves are drying up faster than a meme coin's utility. Whales have been quietly moving stacks to cold storage while retail FOMO kicks in—a classic distribution pattern.
Technical breakdown underway
The $60K support level just turned into resistance. MACD's bearish crossover confirms what the order books have been whispering for days.
Macro winds shifting
With the Fed's reverse repo facility hitting record highs (again), even crypto natives are hedging bets. Because nothing says 'risk-off' like Wall Street parking $2T in overnight government debt.
This isn't 2021's speculative bubble—it's a mature market doing what mature markets do. Corrections clear weak hands, reset leverage, and (if we're being honest) give institutional buyers a better entry point. The only question is whether you'll be the shaken-out retail trader or the patient accumulation whale.
Technical Analysis
By ShayanMarkets
The Daily Chart
After facing strong resistance at the $123K level, Bitcoin has entered a corrective phase, likely driven by profit-taking and distribution among investors. Historically, when BTC cools down at its all-time high prices, capital often rotates into altcoins, sparking rallies across the broader market.
Currently, a pullback toward the key 0.5–0.618 Fibonacci retracement zone, located between $107K and $111K, appears likely before the next major bullish impulse. Until then, a period of consolidation is expected, potentially accompanied by notable strength in altcoins.
The 4-Hour Chart
On the lower timeframe, Bitcoin’s consolidation is forming a descending wedge pattern, a structure that typically signals bullish continuation. The price is now approaching a crucial support zone between $113K and $116K, aligning with the 0.5–0.618 Fibonacci retracement levels.
If this zone successfully holds and triggers a breakout above the wedge, a MOVE back toward the $123K resistance becomes likely. However, if support fails, a deeper correction toward the $111K level may unfold.
On-chain Analysis
By ShayanMarkets
Bitcoin has seen its largest net inflow to exchanges since July 2024, marking a key shift in on-chain dynamics. Such inflows suggest increased distribution and profit-taking, as more BTC becomes available for trading.
Historically, similar exchange inflow spikes have often preceded deeper corrections. This week’s data hints that major players, potentially funds or institutions, are offloading BTC NEAR all-time highs, managing their risk exposure.
However, this capital rotation could also fuel an altcoin rally, with demand flowing into alternative assets. As exchange supply rises, market volatility may increase, especially during demand surges. Traders should keep a close eye on this metric, as it could foreshadow the next major move.
