Since the price of Bitcoin began to decline after its recent rise to a new all-time high on December 17, several key metrics have shown downward movement, raising uncertainty about… BTC Prospects short term. A continued decline in important metrics could lead to a further decline in BTC price to previous support levels.
Coinbase Premium Hints at Low Demand for Bitcoin
The ongoing decline in Bitcoin prices has been followed by a sustained downward trajectory for the Coinbase Premium BTC Index. Technical analyst and host of Crypto Banter Kyle Dobbs I mentioned Negative development on the X platform (formerly Twitter), reflecting a decline in buying appetite by investors on the US cryptocurrency exchange.
This indicator, which calculates how much Bitcoin Costs on Coinbase compared to other international exchanges are frequently used to assess institutional interest. The continuing downward trend comes as market optimism declines and indicates a potential change in investor behavior due to price fluctuations.
According to the expert, Coinbase Premium Bitcoin Indicator This phenomenon escalated during Donald Trump’s victory in the US presidential elections held in early November. Kyle Dobbs highlighted that this increase helped push the price of Bitcoin above $100,000.
However, since December 7, this key metric has fallen along with the digital asset’s recent decline below the $94,000 level. Other factors, such as the holiday slowdown and liquidity difficulties, appear to be weighing on the market, which could lead to an extended decline in interest rates. Bitcoin price short term.
While these conditions suggest a bearish outlook, Kyle Dobbs remains confident about the larger outlook for Bitcoin, saying: “It’s not over yet.” So far, crypto enthusiasts are closely monitoring this trend for signs of a broader impact on price action in the coming weeks.
This development coincides with Bitcoin’s vision of Huge influx to cryptocurrency exchangesThis indicates high market activity and investor participation. Specifically, the large movement of BTC to cryptocurrency exchanges indicates a potential selling strategy by investors, causing a negative outlook on the digital asset.
The large influx could be crucial in shaping Bitcoin price dynamics in the short term. As the decline in prices coincided with the influx of coins, speculation and uncertainty developed within the community around this matter Next price action for BTC.
BTC holdings in the event of a loss decline sharply
Bitcoin may have seen significant volatility, but Kyle Dobbs has It has been identified A decline in BTC held at a loss, reflecting increasing market sentiment. Kyle Dobbs reports that the amount of Bitcoin held at a loss has fallen to around 3 million BTC, down from 3.9 million to 6.1 million during last year’s corrections.
As a result, investors show resilience and the market becomes less stressed. Given the development, the market expert suggests stronger and A healthier look for the main asset.
Featured image from Unsplash, chart from Tradingview.com