BTC experienced a rapid surge last night, breaking through multiple previous resistance levels, reaching a high of around $99,480 at around 2 AM today, and the bulls seem to have regained their upward momentum.
Does the negative premium on Coinbase BTC signal a rebound?
This week, Western countries will be celebrating the most important holiday of the year, Christmas (December 25th), and some investors were previously concerned that BTC might continue to decline due to a lack of upward momentum.
However, against this backdrop, CryptoQuant analyst MAC_D posted a reminder to investors yesterday (24th) that BTC is currently trading at a -0.221% negative premium on the US-listed cryptocurrency exchange Coinbase, suggesting that the buying demand from US investors has slightly decreased.
But he pointed out from historical data that this phenomenon will be temporary during a bull market and is usually a buying opportunity:
The negative premium on Coinbase BTC has reached -0.221%, the fifth time it has reached this level since last May. The decline of this indicator suggests that the buying pressure from US investors has eased compared to investors on Binance.
However, historically, this phenomenon will be temporary and will attract new buyers to enter, so we can view it as an opportunity.
Although it is not yet certain whether this correction has reached the bottom, if the bull market is still ongoing, the bottom will form quickly and a rebound will occur.
From the chart below, although there have been two more declines in the price after the negative premium exceeded 0.2% since last May, overall, a rebound has indeed occurred shortly afterwards, which may be an indicator worth long-term attention for spot traders.
QCP Capital: Altcoins may see a catch-up rally
Additionally, QCP Capital recently posted on its official Telegram channel analyzing that around $20 billion worth of BTC and ETH options will expire on Friday, and the market may see a new round of volatility.
If BTC rebounds and rises above $100,000 at that time, the volatility may remain stable; but if BTC continues to struggle below $100,000, it may trigger a catch-up rally in Altcoins:
A similar scenario occurred a month ago, when the ETH/BTC ratio was rebounding from the 0.032 support level, driving changes in Altcoins.
We are closely monitoring whether BTC will continue to explore lower levels from the current position to confirm the direction of market capital rotation and the trends of other cryptocurrencies.
