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Bitcoin faces correction risks amid rising inflows, but whales and institutions remain unfazed as market dynamics evolve.
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Despite a spike in exchange reserves, key players like whales are signaling their confidence through significant accumulation.
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According to a recent report from COINOTAG, “The active accumulation by institutions indicates a long-term bullish sentiment prevailing over short-term market fluctuations.”
Bitcoin encounters potential corrections amid rising inflows, yet strong accumulation by whales signals long-term market confidence.
What’s Bitcoin preparing for?
On the 4-hour chart, Bitcoin appeared to be forming a textbook cup and handle pattern, which traditionally signals a potential bullish continuation.
BTC traded at $85,138.04, posting a modest 1.02% gain at the time of writing.
The neckline of the pattern sat at the $88,860 level—a key resistance zone that must be cleared to confirm a breakout.
A decisive move above this level could trigger a wave of buying pressure, opening the path toward new highs.
However, the pattern has yet to complete, and the handle portion remains sensitive to broader market sentiment.
If bulls fail to build enough momentum, Bitcoin could pull back toward the $81,535 support level, which has proven resilient in previous dips.
Source: TradingView
Is momentum weakening?
Market sentiment showed no clear direction at press time, with bulls and bears perfectly matched at 130 each over the past seven days.
This equilibrium indicated deep uncertainty in the market, where any minor event could tip the scales sharply.
At the same time, Bitcoin’s network activity has dropped significantly, approaching historic lows seen in 2018 and 2021.
A decline in on-chain engagement often reflects reduced user demand and weak market participation. However, renewed volume or institutional buying could quickly reverse this decline.
Source: CryptoQuant
Whale buying intensifies
Despite rising exchange reserves, whales and institutions appear to be accumulating aggressively. Glassnode data shows wallets holding over 10,000 BTC increasing their holdings, pushing the accumulation score near 0.6.
Additionally, Tether has acquired $750 million worth of BTC in 2025, now holding over 100,000 BTC valued at $8.5 billion.
Bitwise has also entered the accumulation phase with a $24.5 million purchase, highlighting sustained long-term confidence.
Source: Glassnode
Is scarcity losing influence?
The stock-to-flow ratio has dropped 71.43% in the past 24 hours, sitting at 907.2K at press time. This metric evaluates scarcity by comparing circulating supply to the rate of new issuance.
A drop of this size suggests either market saturation or temporary doubt in scarcity as a value driver. Nevertheless, many investors still see current levels as a strategic buying opportunity.
Source: CryptoQuant
Conclusion
A short-term correction looks likely given the rising exchange reserves and weakening network activity. These signs often precede local tops or temporary market cool-offs.
However, strong whale accumulation and continued institutional buying provide a solid cushion that could limit the downside.
Therefore, while short-term volatility may persist, the broader bullish structure and long-term outlook for Bitcoin remain firmly intact.
