CryptoQuant analyst stated yesterday (24th) that Bitcoin on Coinbase has shown a negative premium of -0.221%, suggesting that the current purchasing demand from US investors has slightly decreased. The analyst believes this could be a buying opportunity.
Bitcoin initiated a rapid rise last night, breaking through multiple resistance levels, peaking around $99,480 at around 2 AM today, suggesting that bulls seem to have regained upward momentum.
Does the negative premium of Bitcoin on Coinbase indicate a rebound?
This week, Western countries will welcome the most important holiday of the year, Christmas (December 25), leading some investors to worry whether Bitcoin will continue to decline due to a lack of upward momentum.
However, in this context, CryptoQuant analyst MAC_D reminded investors yesterday (24th) that Bitcoin has shown a negative premium of -0.221% on the US-listed cryptocurrency exchange Coinbase, indicating that the current purchasing demand from US investors has slightly decreased.
However, he pointed out from historical data that this phenomenon will be short-lived during a bull market and is generally a buying opportunity.
The negative premium of Bitcoin on Coinbase has reached -0.221%, marking the fifth time it has hit this level since last May. The decline of this indicator suggests that the buying pressure from US investors has lessened compared to that of investors on Binance.
However, historically, this phenomenon will be temporary and will attract new buyers, which we can view as an opportunity.
Although it is currently uncertain whether this pullback has reached the bottom, if the bull market is still ongoing, then a bottom can form quickly, leading to a rebound.
From the chart below, although there were two instances of price decline after the negative premium exceeded 0.2% since last May, overall, a rebound did occur shortly thereafter, making it a potentially significant indicator for spot traders to monitor in the long term.
QCP Capital: Altcoins may see a rebound.
Additionally, QCP Capital recently posted an analysis on its official Telegram channel, indicating that options worth about $20 billion in Bitcoin and Ethereum will expire on Friday, potentially ushering in a new round of volatility in the market.
If Bitcoin rebounds again to above $100,000 at that time, volatility may remain stable; however, if Bitcoin continues to struggle below $100,000, it may trigger a rally in altcoins.
A similar situation occurred a month ago when the Ethereum/Bitcoin exchange rate was rebounding from a support level of 0.032, driving movements in altcoins.
We are closely monitoring whether Bitcoin will continue to decline from its current level to confirm the rotation direction of market capital and the trends of other cryptocurrencies.
