Bitcoin currently signals a key buying opportunity: TD sequence flashing + inverse head and shoulders pattern formed, with 118,000 USD as the long positions target.

Bitcoin displayed a technical reversal signal on August 4, briefly recovering the support at the lower band of the descending channel, with a buy signal issued by the TD sequence on the 12-hour chart. Although the 24-hour volume decreased by 14% to $49.18 billion, on-chain data indicates that institutions are accelerating accumulation: Metaplanet invested $53.7 million to acquire 463 BTC, with a net outflow of $18.84 million from exchanges. This article analyzes whether BTC can achieve a 3.3% rise to challenge $118,000 based on the inverse head and shoulders pattern, the divergence of the super trend indicator, and mainstream CEX Long-Short Ratio data.

( Technical Dawn: Three Major Reversal Signals Resonance ) BTC rose slightly by 0.89% to $114,700 on August 4, with key technical patterns emerging:

1. TD Sequence Buy Signal: The 12-hour chart forms a nine-turn sequence, precisely triggered at the $113,500 support level. This indicator is known for capturing trend reversals.
2. Recovery of the lower band of the descending channel: The price returns above the lower band of the descending channel, breaking the ongoing downtrend structure.
3. Inverse Head and Shoulders Pattern: The bottom of the channel forms a bullish inverse head and shoulders pattern, accompanied by a moderate increase in volume, suggesting that the bottom has been established. Technical analyst Ali Martinez pointed out that the above signal, combined with the Long-Short Ratio of BTCUSDT on CEX platforms reaching 1.54 (with bullish positions accounting for 60.65%), indicates that traders are positioning themselves in advance for a rebound.

( Key Resistance and Indicator Divergence: $118,000 Standoff ) AMBCrypto's technical analysis indicates that if BTC holds steady at the $114,000 support level, it is expected to target $118,000 (a rise of 3.3%). However, the Super Trend indicator has issued conflicting signals:

• 4-hour chart: The indicator is above the price in red, maintaining a bearish outlook.
• 1-hour chart: The indicators have turned green below the price, issuing a buy signal. This divergence indicates that the market is still in a transitional phase of volatility, and a volume breakout above the upper band of the descending channel is needed to confirm a trend reversal. Currently, there is strong technical resistance in the $117,500-$118,000 area.

( on-chain data verification: institutions accumulate on dips ) On-chain data resonates with technical aspects:

• Institutional Accumulation: Japanese listed company Metaplanet announced the purchase of 463 BTC at a unit price of $115,895, with a year-to-date holding return of 459.2%.
• Exchange Outflow: In the past 24 hours, the net outflow from exchanges was 18.84 million USD in BTC, marking the largest single-day outflow in three weeks.
• Miners Reluctant to Sell: Weekly miner output was only 3,150 BTC, far below institutional accumulation. The improvement in the supply-demand structure provides fundamental support for the rebound, and CoinGlass data shows that long-term holders are accelerating their accumulation of coins.

Conclusion: The technical analysis of Bitcoin and on-chain data is synchronously releasing positive signals. The TD sequence buy signal and the inverse head and shoulders pattern are forming a short-term bottom framework. If it can consistently hold above $114,000 with increasing volume, a target of $118,000 with a 3.3% rise is expected. However, caution is needed as the divergence indicated by the super trend indicator suggests that the market has not yet exited the consolidation range. Effective breakout requires monitoring two key signals: the 4-hour super trend turning green and the hourly chart maintaining a bullish pattern. Investors can consider entering positions in batches based on the breakout of the resistance level at $117,500; if it falls below $113,500, stop-loss measures are necessary. Continuous accumulation by institutions and outflows from exchanges suggest that buying on dips may be a rational choice.