Bitcoin Fades Short-Term Rebound as Dormant Coins Flood Exchanges

Bitcoin's price action has been closely watched over the past few days as it defends support near $62,100. On August 1, Bitcoin stopped its decline at this level, a horizontal support that was also seen on July 9 and 14. This narrow support area is close to the lower boundary of a descending channel that has guided price lower since July 21.

On August 2, Bitcoin rebounded to test the 50-day simple moving average (SMA) near $63,300 before fading. The 0.236 Fibonacci retracement level at around $63,600 was not reached and remains intact as resistance. This means that Bitcoin is still inside the descending channel.

Older coins have been flowing into Coinbase, with inflows from coins that had remained inactive for between two and seven years increasing sharply. According to CryptoQuant analysis, these coins include those in the three-to-five-year cohort, which saw a 595% rise above their quarterly baseline, and the five-to-seven-year group, which increased by around 1,016%. However, it's essential to note that exchange deposits do not necessarily mean that holders will sell.

The Coinbase Premium remained weak between -0.09 and -0.14 during this period, indicating weaker demand from US spot buyers. This could make rebounds harder to sustain, although it doesn't prove that the inflows caused Bitcoin's rejection at the moving average.