Bitcoin (BTC) has seen a modest recovery over the past week, with prices up 2%. The asset is trading near $64,000, yet three on-chain signals flash bearish for its July rebound.

The pressure builds as US strikes on Iran continue, lifting oil prices. That risk-off backdrop has added pressure across crypto markets.

Exchange Data Turns Bearish

The first signal comes from exchange reserves. Stablecoins act as dry powder for buying cryptocurrencies. Over the past 30 days, roughly $2.3 billion in stablecoins left Binance and Bybit, according to analyst Darkfost.

He said the decline points to weakening liquidity and softer buying demand. The analyst added that investors are increasingly withdrawing stablecoins from exchanges rather than keeping them available for trading.

“It is therefore this still-too-pessimistic market-wide positioning that continues to deprive BTC of the resources it needs to durably break out of this consolidation zone,” the analyst wrote.

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A second bearish indicator comes from the Coinbase Premium Index. The metric has remained consistently below zero since early May and currently stands at -0.062.

A negative Coinbase Premium typically signals weaker buying interest from US-based investors, particularly institutions, as Bitcoin trades at a discount on Coinbase relative to global exchanges. 

The prolonged negative reading suggests demand from this cohort has remained subdued, adding to concerns that buying pressure is fading despite Bitcoin’s recent price action.

Bitcoin’s Top Buyers Capitulate at a Loss

The third signal comes from holders. Analyst Darkfost reported that recent top buyers are now selling at a loss. These investors entered between $75,000 and $126,000 over the past 6 to 18 months.

This group holds 2,450 BTC at a loss on exchanges, on a 30-day average. Their realized losses have set a record, with a monthly average near $90 million.

The trend extends to long-term holders (LTHs) across the market. 

The reading cuts both ways. Some analysts view record losses as a sign of late-stage seller exhaustion. Darkfost, however, notes these phases confirm a bear market is already well advanced.

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Source: BeInCrypto