Bitcoin Stalls at $63k as Dormant Coins Flood Coinbase Amid Weak US Demand

Woofun AI reports that Bitcoin’s price action on August 1 halted near critical support levels, coinciding with a significant influx of dormant coins onto Coinbase. This convergence of technical resistance and supply-side pressure emerged as the asset struggled to maintain momentum entering the August 2 trading session.

The horizontal support zone around $62,100 had previously arrested downward moves on July 9 and July 14, aligning closely with the lower boundary of a descending channel. Rather than forming a precise overlap, this area created a narrow but resilient floor for the asset. Bitcoin opened the August 2 session near $62,700, attempting to reclaim the 50-day simple moving average located at approximately $63,300.

However, the upward thrust lacked conviction, with prices retreating to roughly $63,050 by the time of writing. Consequently, the daily candle closed below the moving average, signaling a failure to sustain the rebound despite the initial test of higher resistance.

This technical weakness was accompanied by a sharp rise in exchange inflows from coins that had remained inactive for between two and seven years. While these transfers do not confirm immediate selling intent, they indicate that dormant supply is becoming more accessible to the market. Inflows from the three-to-five-year cohort surged approximately 595% above their quarterly baseline, while the five-to-seven-year group saw an even more dramatic increase of around 1,016%. Although these percentages were amplified by low starting volumes, the trend was consistent across multiple age groups. Realized value from the two-to-three-year cohort reached approximately $315 million, with the three-to-five-year group contributing another $216 million in spending activity.

Coinbase recorded net flows approximately 1,423% above its 90-day baseline, with inflows from three-to-five-year-old coins rising by about 1,014%. This surge in supply occurred while the Coinbase Premium remained deeply negative, fluctuating between -0.09 and -0.14. This represented the weakest stretch for the metric in two weeks, indicating that Bitcoin traded more cheaply on Coinbase than on comparable offshore markets. The negative premium reflects subdued demand from US spot buyers, who were unwilling to pay a premium for immediate access. As a result, dormant supply accumulated on the platform without corresponding buying pressure, creating a structural imbalance that could hinder future rebounds.

In contrast to the concentrated activity on Coinbase, Binance recorded steadier inflows, suggesting that the surge in dormant coin movements may have been specific to the US-based exchange. The futures market on Binance remained calm, with funding rates hovering near neutral between 0.00 and 0.01. This indicates that traders had not built heavily leveraged positions in either direction, avoiding the liquidation pressure typically associated with crowded futures markets. The current price weakness is therefore developing in the absence of extreme leverage, pointing to fundamental supply-demand dynamics rather than speculative deleveraging as the primary driver.

Woofun AI data shows that CryptoQuant’s miner shutdown indicator moved to 1, rising 50% above its monthly baseline and 350% above its quarterly average. This signal suggests that some marginal mining capacity is operating below breakeven, forcing less efficient miners to consider shutting down machines or selling reserves to cover costs. While a single reading does not confirm that miners are already flooding the market with Bitcoin, the indicator becomes more relevant if weak profitability persists. If miner outflows begin to increase alongside the movement of older coins to exchanges, the combined supply pressure could further weigh on prices.

The duration of aged-coin inflows now matters more than the initial percentage increase, as brief spikes may be absorbed by the market.

However, continued deposits alongside a negative Coinbase Premium would leave more available supply facing weak US spot demand. This scenario highlights the vulnerability of long-term holders and miners to weak profitability, as both groups may be compelled to sell. The convergence of these factors suggests that Bitcoin’s recovery path remains constrained by underlying supply pressures and lackluster demand.