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Bitcoin Recovers Above $98,000 As Coinbase Whales Start Buying
Following a tumultuous few days for the cryptocurrency market, Bitcoin (BTC) has managed to rebound above the crucial psychological barrier of $98,000. This comes as a surprise to many, considering the intense selling pressure that led to the crypto’s dip below this level just yesterday.
As reported by our earlier article, the Coinbase Premium Gap – an indicator that tracks the difference in price between Coinbase and Binance for Bitcoin transactions – was previously seen trading in the red zone, suggesting increased selling pressure from American investors. However, it appears that institutional entities have taken notice of this development and are now accumulating the asset on the popular US-based exchange.
The trend has sparked a rapid reversal in the premium gap’s trajectory, with the metric now firmly situated within positive territory. This development comes as a significant bullish sign for Bitcoin enthusiasts, as historical data indicates that Coinbase whales tend to drive market trends.
In other news, the Bitcoin Korea Premium Index – another key indicator tracking South Korean exchange activity – has hit its highest level in three years, currently hovering at around 12%. According to reports, users on these platforms are aggressively buying into the recent dip, further reinforcing the narrative of a short-term recovery.
At the time of writing, Bitcoin is trading at approximately $98,400, reflecting a modest decline of about 1% over the past week. Despite this minor setback, the sentiment surrounding the asset appears to be shifting towards a more bullish outlook.
As we move forward into the near future, it’s crucial to keep an eye on these indicators for any signs of reversal or further consolidation. While a continued stay within the positive region would likely fuel speculation about the possibility of further price growth, a decline back under zero could potentially reignite bearish momentum.
In either case, the cryptocurrency landscape is currently presenting a fascinating opportunity for investors looking to capitalize on this sudden change in market dynamics.
Source: bitcoinist.com
