Bitcoin's price drop in recent days has led to a reduction in trading activity among U.S. investors. As of Tuesday afternoon, the leading currency is trading at $93,600, down 6% from its record high four days ago.
With strong resistance forming in the $99,000 price region, American investors have gradually reduced their holdings in the currency.
US Bitcoin Holders Walk Away
Data from CryptoQuant has shown a decline in the Coinbase BTC Premium Index over the past seven days.
This indicator measures the difference in the price of Bitcoin on Coinbase compared to Binance. It tracks trading activity from institutional investors and the US, as Coinbase is a preferred platform for these groups. A negative value indicates that the price of the coin on Coinbase is lower than on Binance, suggesting lower demand or selling pressure from US Bitcoin investors.
Coinbase Bitcoin Premium Index. Source: CryptoQuant
Furthermore, this trend of low buying activity among US investors is reflected in Bitcoin’s Coinbase Premium Gap. According to CryptoQuant, this indicator has fallen to a seven-day low of -10.
It also measures the price difference between Bitcoin on Coinbase Pro (USD pair) and on Binance (USDT pair). A positive gap primarily indicates increased buying pressure from US investors for Bitcoin on Coinbase, suggesting increased demand. Conversely, a negative gap implies lower demand from US investors.
Bitcoin Coinbase Premium Gap. Source: CryptoQuant
BTC Price Prediction: Downtrend May Persist
On the BTC daily chart, the Parabolic Stop and Reverse (SAR) indicator now shows dots above the price, confirming a bearish trend. Incidentally, this is the first time the dots have appeared in this position since November 6.
The SAR indicator tracks the price trend of an asset by plotting dots above or below the price. Dots below the price suggest an uptrend, while dots above the price signal a downtrend.
BTC Price Analysis. Source: TradingView
Bitcoin is currently trading at $92,540, which is 4% below the support level formed at $88,630. If the downtrend continues, the coin could fall below this support level and reach, for example, $80,159.
However, if market sentiment changes and buying activity resumes, BTC price could reclaim its all-time high of $99,419.
The article Bitcoin retreats after lack of interest from US investors appeared first on BeInCrypto Brazil.
