Bitcoin (BTC) Bulls Eye Rally After Weekly Bullish Divergence, Lower Exchange Reserves
Bitcoin (BTC) has been stuck in a prolonged bear market for months, trading around $64,500 (about 50% below last year’s ATH). Still, the article points to three signals that could spark a Bitcoin rebound soon.
First, analyst Ali Martinez highlighted a weekly bullish divergence. He noted that when this pattern last appeared, BTC surged more than 700%. If history repeats, the piece claims upside could extend above $500,000, though it also stresses this is unlikely in the current depressed sentiment.
Second, CryptoQuant data shows BTC exchange reserves have fallen to roughly 2.7 million BTC—the lowest level since late June. The implied takeaway for traders: reduced exchange supply can lower near-term selling pressure as more holders move coins to self-custody.
Third, BSCN reports that wallets holding 1,000–10,000 BTC bought 66,700 BTC over the past two months, their strongest accumulation since February. That again suggests shrinking “available” supply.
The market move is already underway. BTC pushed toward $65,000 earlier, briefly rejected, then found support near $64,000. A trader using the X account Crypto Catalysts argues the rally toward $100,000–$105,000 has started, with a potential path of $70k, then a correction toward $80k.
However, the article warns BTC has attempted multiple comebacks that bears halted in recent months, so bullish investors are advised to keep expectations realistic.
Bullish
The news is framed as a near-term upside catalyst for Bitcoin (BTC). On-chain indicators point to less immediate sell-side pressure: exchange reserves dropping to ~2.7M BTC suggests more BTC is leaving centralized venues, while large-holder accumulation (1,000–10,000 BTC wallets buying 66,700 BTC) further tightens available supply.
Technically, the weekly bullish divergence cited by Ali Martinez is the main bullish narrative. In past cycles, weekly divergences/structural momentum recoveries have often preceded major upside legs, which is why the article compares the setup to a prior event that led to a >700% move. That said, the piece also notes BTC has repeatedly failed to sustain rallies recently, implying this bullish signal may require confirmation (e.g., acceptance above key resistance and follow-through volume).
Short-term, traders may interpret this combination as support for a push from the current ~$64k area toward higher levels (the article cites $65k and a possible $70k leg). Long-term, if the exchange-reserve downtrend and whale accumulation persist, it can reinforce supply-demand dynamics and improve odds of trend reversal.
Overall, the balance of evidence (reduced exchange supply + whale buying + a historical-looking technical pattern) tilts bullish, but the lack of sustained follow-through in prior attempts keeps uncertainty elevated.