CryptoQuant analyst stated in a post yesterday (24th) that Bitcoin on Coinbase has shown a negative premium of -0.221%, indicating a slight decrease in purchasing demand from US investors, and the analyst believes this could be a buying opportunity.
Bitcoin initiated a rapid rise last night, breaking through multiple resistance levels, reaching a peak of $99,480 around 2 AM today, and the 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), so some investors are concerned whether Bitcoin will continue to decline due to a lack of upward momentum.
In this context, CryptoQuant analyst MAC_D reminded investors in a post yesterday (24th) that Bitcoin on the US-listed cryptocurrency exchange Coinbase has shown a negative premium of -0.221%, indicating a slight decrease in purchasing demand from US investors.
However, he pointed out from historical data that this phenomenon will be short-lived during a bull market and is usually a buying opportunity.
The negative premium of Bitcoin on Coinbase reached -0.221%, marking the fifth time it has reached this level since last May. The decline of this indicator suggests that the purchasing pressure from US investors has eased 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 bottomed out, if the bull market is still ongoing, then the bottom will likely form soon and a rebound will occur.
From the chart below, although there were two instances of price drops after the negative premium exceeded 0.2% since last May, overall, a rebound indeed occurred shortly thereafter, which may be a long-term indicator worth noting for spot traders.
QCP Capital: Altcoins may experience a rally.
Additionally, QCP Capital recently posted an analysis on its official Telegram channel, indicating that approximately $20 billion worth of Bitcoin and Ethereum options will expire on Friday, which may lead to a new wave of volatility in the market.
If Bitcoin rebounds again and rises above $100,000, volatility may remain stable; however, if Bitcoin continues to struggle below $100,000, it may trigger a rally in altcoins.
A similar market 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 dip from its current level to confirm the direction of market fund rotation and the trends in other cryptocurrencies.
