A key Bitcoin indicator that has frequently warned of a possible short-term rally in BTC over the past few weeks has fallen into bearish territory, indicating that investor attention is shifting to the largest crypto asset. .
Bitcoin Coinbase Premium Index hits new lows
Information media outlet IC News recently reported that Bitcoin’s Coinbase Premium Index has been hit by a plunge to new lows, raising questions about investor demand for the digital asset.
Historically, the Coinbase Premium has been used as a gauge of domestic interest in Bitcoin by measuring the price differential of BTC on the Coinbase platform and other cryptocurrency exchanges. The decline in this important indicator suggests that buying pressure from U.S. retail investors may be waning.
Coinbase’s premium plummeted to around -0.2%, the lowest level in two years, according to the platform. The platform noted that the signal value currently indicates a possible decline for US-based trading platforms like Coinbase.
Coinbase premium drops to 2-year low | Source: X’s IC News
This sharp decline comes after the indicator has shown a positive trend over the past few weeks, indicating a potential short-term upside for Bitcoin. Typically, a rise in Coinbase’s premium indicates that large investors are taking advantage of BTC’s growing strength. On the other hand, a decline in the index suggests a change in confidence among investors and traders.
A bearish turn in the indicator could also imply that crypto assets are losing their short-term upward momentum. Despite recent increases in public sentiment surrounding Bitcoin’s future price performance, this decline suggests that large buyers may be adopting a cautious approach, which could lead to In the short term, this may affect price movements.
Because this indicator is important for determining broader market trends, both retail and institutional investors are currently closely monitoring this indicator to navigate Bitcoin’s next price trajectory. Masu.
BTC breaks out from major pattern to new all-time high
Bitcoin has now climbed to the $68,000 level, painting a positive outlook. The crypto asset is approaching the $69,000 level with strong support from the bulls, as evidenced by a more than 56% increase in trading volume over the past day.
BTC’s current price performance combined with major formations has attracted bold predictions from experienced crypto analysts, with some predicting that the digital asset could soon reach all-time highs.
According to Mustache, one market expert noted that Bitcoin appears to have successfully broken out of a downward expansion wedge after the weekly close. As a result, experts believe BTC could be poised to hit new all-time highs in the coming weeks.
BTC trades at $69,000 on 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Adobe Stock, chart from Tradingview.com
