Bitcoin’s rise on Sunday night lost momentum around $79,400. The price is trading at $77,000 today. Signs of weakness have begun to appear in the cryptocurrency market in the short term. Recent developments show that Bitcoin faces significant resistance in the near term.
Coinbase premium turned negative
The Coinbase premium index, which measures the price difference between the Bitcoin price and foreign exchanges on the Coinbase exchange, where America-based institutional investors are dominant, has moved into the negative zone for the first time since April 8. According to Coinglass data, the index was recorded as -0.04 percent.
The index had remained consistently positive in the last two weeks. This indicated that especially US investors bought Bitcoin strongly and the prices climbed from $66,000 to $79,000. However, with the premium turning negative again, the buying appetite originating from the USA seems to have decreased. Now the direction of the market has become more dependent on demand from foreign exchanges.
Coinbase premium turning negative is usually accompanied by a price correction or sideways movement in the short term.
The situation has not changed in Bitfinex whale
Bitfinex whale, known for its loaded Bitcoin positions and whose price movements are closely monitored, is currently waiting at a level that can be considered the peak of the cycle with 79,342 BTC. Previously, this investor would typically reduce holdings after local bottoms became clear or a strong upward move began.
The lack of change in its position indicates that upside potential may be limited despite Bitcoin rising above $79,000. This increases the risk of price decline in the short term.
Cost of short-term investors and pressure on the market
Bitcoin failed to regain the $79,200 level, which is the average buying cost for short-term holders. This indicator represents the purchase price of investors who have held their assets for 155 days or less. As long as the market price is below this level, it is expected that those who have recently purchased will continue to sell, which will continue to put pressure on the price.
On the other hand, the Bitcoin conference, one of the most important cryptocurrency events of the year, has started. However, when the price movements in such conferences in the past are examined, it is seen that there is usually a significant retreat after the rises.
