The post Bitcoin’s U.S. demand flashes a 90-day warning – What it means for BTC appeared on BitcoinEthereumNews.com.
The Coinbase Bitcoin Premium Index has stayed negative for ninety days as Bitcoin’s [BTC] price continues its struggle to break above the $70,000 price level last observed in May. To put things in perspective, the Coinbase Bitcoin Premium Index calculates the price difference between Bitcoin on Coinbase and Binance and provides an estimate of buying or selling pressure from the U.S. market. A negative reading indicates that Bitcoin is trading at a lower price on Coinbase than Binance. At press time, the index stood at ‑0.1066% according to Coinglass. However, what’s raising eyebrows is not the reading itself but the premium, which has stayed negative for three months. Source: Coinglass Here, the overall pattern points to sustained spot weakness on the U.S. side, which was further supported by a previous report from AMBCrypto. However, it does not necessarily portend a bear market or institutional withdrawal from Bitcoin. Is price action denoting something else? This occurred as the price of Bitcoin dropped from about $79K in May to $62,923.64 at the time of writing. Since the RSI remained largely below the neutral level during that time, it too echoed the bearish sentiment. Source: Trading View Additionally, Bollinger Bands further supported the volatility that had prevented the price from hitting a high bullish threshold. In fact, despite whale wallets having bought 54,000 more Bitcoin since mid-June, the price action hasn’t changed. Are bulls losing steam? Adding to the pressure, Glassnode also analyzed that the buy-side support below the current price of Bitcoin is eroding. A significant concentration of buy orders below the market existed earlier, especially in June. Source: Glassnode This created a solid “floor” because buyers were prepared to intervene and absorb selling pressure if Bitcoin dropped toward those levels. Now, with many of those bids removed, filled, or shifted lower,…
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