The Bitcoin market is currently in a slow phase, driven by sentiment in the United States. On-chain activity is low and leading indicators suggest neutrality. However, fundamentals remain strong with more mining rigs going live. The industry hopes the bull cycle continues, as an early termination would be undesirable for whales, mining firms, and institutional investors.

The Coinbase Premium Index, which reflects price differences between Coinbase and other exchanges, has consistently shown a negative premium. There was a brief spike in premium coinciding with a Bitcoin price rise, indicating strong buying pressure. However, the spike was short-lived and the index returned to negative territory, suggesting dominant selling pressure on Coinbase. This liquidity and trading behavior on Coinbase seems to be influencing Bitcoin's recent price downturn.

Trader Tardigrade identifies Bitcoin's movement within a bullish pullback, where there are brief recoveries before additional drops. This pattern continued until early 2023, when Bitcoin started to reverse. As Bitcoin transitioned into an uptrend, bullish pullbacks emerged, indicating temporary pauses before the next rally. The distinction between bullish and bearish pullbacks, marked by the formation of lower lows and higher lows respectively, signals a shift in market structure and sentiment.



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