Bitcoin (BTC) rebounded to $76,000 on Wednesday, offering investors some relief. However, both on-chain data and technical analysis suggest that the crypto’s recent recovery may be just a temporary phase, with the possibility of a deeper fall ahead.

Bitcoin Price Movement Suggests

BTC’s price movement has confirmed a head and shoulders (H&S) pattern on its weekly chart, signaling the possibility of a correction to $52,650.

The pattern’s measured target equates to a 31% drop from current levels, thus extending the total decline from the $126,000 peak to 58%. Moreover, a bear flag pattern on the daily chart is pointing towards a decline to $65,500.

Also Read: Binance Adds 1,315 BTC to SAFU Fund in a $100M Move

Bearish Technical Patterns Emerge

The Puell Multiple, a tool that measures miners’ daily revenue, has continued its fall into the discount zone, signaling the continuation of the trend’s continuation.

BTC miners are facing difficulties as their reserves decline; besides this, the network hashrate has fallen by 12% since November 2025 highs. Large BTC inflows to Binance, amounting to 15,709 on Tuesday, pose the risk of selling pressure and even panic selling.

$BTC The negative energy caused by the Wars, Epstein files, Trump, & more is all over the air.. & the charts.

will they make it that obvious with this bearish head & shoulders pattern?

Bitcoin Has to bounce from here or we go lower to the highlighted area. pic.twitter.com/USQCHjZip0

— BitcoinHabebe (@Bitcoinhabebe) February 3, 2026

Also Read: BTC Falls to $76,000 as Ongoing Sell-Off Delays Trend Reversal

On-Chain Data Says

On-chain data reveals massive Bitcoin inflows to exchanges. Over two days, 56,000 and 59,000 BTC have been sent to Binance, thus creating selling pressure. The chart of the Puell multiple is one such indicator hinting at a downtrend continuation.

While the digital asset is trying to firmly establish its support level above $74,000, the presence of a continually increasing Bitcoin inventory on Binance should deeply concern market participants.

Caution is necessary, as the bearish cycle for the digital asset may continue, driven by deteriorating technicals and persistent selling pressure.

In conclusion, BTC’s plunge from its recent peak might have been momentarily prevented by a rebound, but on-chain data and chart analysis still remain consistent with the deeper downside risk scenario.

Also Read: BTC Slips Under $75K As Whale Sell-Off Tops 50K BTC in Two Weeks