The recent pullback in Bitcoin's price to around $93.5K has brought attention to the critical $91K level, which is the average cost basis for short-term holders. The ability of Bitcoin to sustain above this level is crucial for maintaining a bullish sentiment in the market. Those who bought in at or above $100K are now facing unrealized losses, and their decision to hold or sell will be pivotal. If they choose to sell, it could increase selling pressure and drive prices down further. On the other hand, their decision to hold could stabilize the market and potentially lead to a recovery. The $91K support level is being closely watched, as a breach below could trigger further corrections and a potential bearish phase. The Coinbase Premium Index, which gauges the price difference between Bitcoin on Coinbase and Binance, has seen a nosedive, suggesting volatility and low demand for BTC. If this trend continues, Bitcoin could face further declines. However, a swing back to a positive premium could indicate easing selling pressure and potentially boost Bitcoin's price. The Coinbase Premium Index is seen as a critical indicator for monitoring market sentiment and BTC price movements.



Other News from Today