Is Bitcoin at a crossroads? A rebound may be on the cards IF...

Exchange Reserve data provided some additional context too.

Rising exchange reserves typically indicate greater selling intent as investors move assets onto exchanges. On the contrary, declining reserves mean that investors might be withdrawing Bitcoin to private wallets for longer-term holding.

Bitcoins exchange reserves have been trending higher, rising to 2.73 million BTC from 2.71 million BTC on 19 January. Such a hike may be indicative of growing short-term selling pressure.

While the broader structure remains constructive, the short-term outlook could stay bearish until exchange reserves begin trending lower.

Bitcoin Season Index leans towards early bull

Market seasonality remains a key determinant of investor positioning, with press time data showing a gradual tilt towards Bitcoin dominance.

For example – The Bitcoin Season Index, which begins at the 25-level, stood at 29 and has remained largely flat in recent sessions. Such sideways movement could allude to investor indecision, with sentiment hovering between cautious bearishness and early bullish positioning.

A sustained move higher from this range would signal renewed capital rotation into Bitcoin and could support a stronger upside move – Reinforcing the developing bullish narrative.