Bitcoin Market Analysis: Divergence Between US and Asian Trends Revealed

Bitcoin is consolidating around $84,650 after a brief upward surge to nearly $86,000. Analysts observe on-chain data for signs of sustained recovery despite recent volatility due to US-China trade tensions. Key metrics like the Coinbase Premium suggest renewed buying interest among US investors, while the Korea Premium Index demonstrates a lag in Korean market participation, indicating shifting regional dynamics.

Bitcoin is currently undergoing a consolidation phase following a swift rise earlier this week, reaching nearly $86,000 before retracing to around $84,650. Analysts are closely examining on-chain data to determine if renewed buying pressure can sustain a recovery despite this minor pullback.

CryptoQuant analyst Avocado Onchain shared insights on the Bitcoin market, particularly focusing on the Coinbase Premium and Korea Premium Index in his recent post. The ongoing trade tensions between the US and China have contributed to volatility in global markets, including Bitcoin, though the cryptocurrency has maintained a critical support level after a correction exceeding 30%.

According to Avocado, the Coinbase Premium—which reflects price variances between Coinbase and other exchanges—has begun to exhibit a constructive trend. This premium has highlighted a pattern of compressing highs and lows since March 2024, culminating in increased buying activity that resulted in a price surge. Currently, the premium is narrowing into a triangular formation, which could signal a resurgence in market momentum, reminiscent of previous trends.

Conversely, the Korea Premium Index, tracking price gaps between South Korean exchanges and global averages, has indicated a lagging performance. It has shown a downward trajectory throughout 2024, only rising as Bitcoin began to gain momentum, suggesting delayed engagement from Korean retail investors. This divergence marks a notable shift, with US investors leading the current market activity.

Avocado noted that despite existing macroeconomic uncertainties affecting short-term price fluctuations, indicators like the Coinbase Premium denote healthy demand. The formation of a support base near $84,000 is characterised as a positive signal for the market. Such developments could herald a robust mid- to long-term recovery in Bitcoin’s price trajectory, despite ongoing instability in external conditions.