Bitcoin price seems to be in correction mode, but falling BTC reserves on exchanges and persistent inflows into spot ETFs suggest that the asset has strong long-term potential.
It’s been four straight days, and the Bitcoin price continues to make red candles, but on-chain metrics tell a different story. According to multiple on-chain tools, including CryptoQuant and SoSoValue, even as the price continues to decline, investors and long-term holders have shown remarkable interest in BTC.
The latest data from CryptoQuant discloses that over the past week, Bitcoin reserves across all exchanges have declined sharply by 4,415 BTC. This massive decline in exchange reserves hints at potential accumulation amid the market dip. In fact, it also suggests that BTC has strong long-term potential.
Meanwhile, another catalyst supporting Bitcoin’s bullish outlook is the persistent weekly inflows into ETFs. Data from SoSoValue reveals that over the past three weeks, U.S. spot Bitcoin ETFs have recorded massive inflows of $1.92 billion, $924.48 million, and $986.85 million, respectively.
These notable inflows into spot ETFs show that not only are crypto investors showing interest and confidence in Bitcoin, but traditional investors are also showing interest in the asset.
In addition to these two bullish developments, a widely followed crypto account shared a post on X featuring Bitcoin’s weekly chart, which appears to show that BTC has formed a golden crossover, where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA.
The post further added that when Bitcoin last flashed a golden cross, the bear market ended, and BTC surged by over 500%.
At press, Bitcoin price had declined 1.35% over the past 24 hours and was trading at $77,942. During the same period, the asset’s trading volume also tanked by over 15% to $29.15 billion, indicating fear among market participants.
Now, the question is, what’s next for the Bitcoin price? Will it continue to fall, or is a potential reversal on the horizon?
As per TradingView’s daily chart, the Bitcoin price remains in an uptrend as it trades above the 200 EMA. However, the formation of red candles suggests an ongoing correction within a tight consolidation zone between $76,000 and $82,000.
In mid-August 2026, Bitcoin’s price surged nearly 30%, but looking at the daily chart, it appears that the asset is currently moving sideways.
Based on the current price action, if the current sentiment remains unchanged, BTC could see a short-term downside move and may fall to the $76,000 level.
However, an upside move could only be possible if the Bitcoin price clears the upper boundary of the consolidation zone, i.e., the $82,000 level. At press time, the asset’s Average Directional Index (ADX) reads 47.54, above the key threshold of 25, suggesting that BTC has strong trend strength.
From the derivatives perspective, Bitcoin appears bearish in the short term. According to CoinGlass, the BTC long/short ratio reads 0.95, falling below 1 and indicating strong bearish sentiment among traders.
Meanwhile, another metric, the Bitcoin exchange liquidation map, shows that $77,398 on the lower side and $79,776 on the upper side are the two key liquidation levels. At these levels, intraday traders have built $592 million worth of long positions and $1.05 billion worth of short positions, suggesting sellers’ dominance.
While combining all these factors, it appears that BTC has strong long-term potential, and investors appear to be taking advantage of the market dip. Meanwhile, the short-term market trend seems bearish as traders continue to bet on short positions.
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