Bitcoin pulls back after recent rally, signs of weakness dominate

At the end of January, Bitcoin experienced a recent rally that pushed it to approximately $76,980, representing an increase of nearly 5% from its monthly lows. However, the current situation is different. As of February 13, the price has retraced significantly to $67,020, showing a 1.25% decline in the last 24 hours. This recent movement highlights the underlying fragilities of the market.

The recent Bitcoin rally loses momentum

The bullish divergence identified on 4-hour charts prompted the upward movement reported by NS3.AI. However, the recent advance lacked solid on-chain fundamentals. Data suggests that this rebound was more the result of technical speculation than genuine market conviction. The absence of significant institutional support limited the rally’s ability to sustain itself.

On-chain metrics reveal market distrust

Three crucial indicators on the Bitcoin network warn of the fundamental weakness of the recent bullish move. The Realized Price Distribution of UTXOs shows an abnormal concentration suggesting vulnerable positions. The increase in exchange reserves indicates that large holders are liquidating positions, a typical sign of latent selling pressure. Finally, the Spent Output Profit Ratio (SOPR) remains at depressed levels, demonstrating that sellers are realizing losses, a clear sign of panic among retail investors.

Multiple resistances hinder new advances

Even before the recent pullback, Bitcoin faced significant technical obstacles. Resistance levels at $76,980, $79,360, and $84,640 represented formidable barriers that the price has not convincingly broken through. These points act as gatekeepers of the bullish movement, and their importance is reinforced by the weakness of on-chain indicators.

Forward outlook

Bitcoin’s recent behavior underscores an uncomfortable truth: the lack of sustained institutional participation and deteriorating on-chain metrics create an environment of prolonged uncertainty. Without clear confirmation that large investors support a new upward move, the likelihood of the rally continuing appears limited. The market requires both technical momentum and fundamental validation—two elements that the recent cycle has not provided in sufficient quantity.