Bitcoin’s Coinbase premium index turned negative for the first time in 15 days, reflecting bearish sentiment from US investors as BTC dropped below $94,000. The presence of CME futures gaps suggests a range-bound trading period, with key price levels to watch. Despite signs of selling pressure, some indicators hint at renewed buying interest in derivatives markets. Bitcoin’s future movement is poised between crucial resistance at $97,000-$98,000 and support at $93,000, leading to potential volatility.
Bitcoin’s market dynamics are shifting as the Coinbase premium index flipped negative for the first time in two weeks, indicating a defensive stance among American investors. This move coincides with Bitcoin (BTC) dropping below the $94,000 mark. A declining premium hints at reduced buying pressure on Coinbase, which has typically reflected both retail and institutional appetites for BTC, potentially leading to bearish sentiment.
From April 27 to April 29, Cointelegraph noted over $300 million in negative cumulative volume delta (CVD), highlighting continuous sell-side pressure. This trend appeared to persist during the weekend, with prominent crypto analysts noticing that whales on Bitfinex were considerably more active in selling compared to those on Coinbase or Binance, amplifying the bearish outlook. Additionally, approximately 8,000 BTC in open interest was wiped out across futures markets, suggesting traders are opting for less leverage.
Surprisingly, recent data indicates that the aggregated futures bid-ask delta has shifted to the positive side, hinting at renewed buying interest in derivative markets. Bitcoin is currently in a critical phase, trading near $94,000, and it’s sandwiched between two CME futures gaps: one from $92,000-$92,500 and another from $96,400-$97,400. Historically, these CME gaps can exert gravitational pull on prices, often being filled quickly.
Bitcoin appears on the verge of testing one of these gaps this week, with a significant chance of dipping to the $92,000 level after failing to maintain its position above the 200-day simple moving average for the first time since April 11. The market signals a possible trend shift in the lower time frame charts as selling pressure mounts. However, trading is expected to remain tumultuous in the short run, especially with pivotal overhead resistance at $97,000-$98,000 and formidable support at $93,000, where liquidity levels gather.
Crypto trader UB emphasised that clarity exists in critical price levels, pinpointing $95.5k and $91.9k as vital spots to monitor. He added that he wouldn’t consider entering a Bitcoin trade unless the price reaches one of these thresholds, noting, “A reclaim of $95.5k would indicate a clear long opportunity to $99.1k.” Overall, Bitcoin’s price action is caught between influential market forces, setting the stage for potential volatility ahead.
As always, it is crucial to note that this piece does not offer investment advice. Trading in cryptocurrencies comes with risks, and it’s essential for traders and investors to conduct thorough research before making any decisions.
