Bitcoin Coinbase Premium hits 7-month low but traders spot a silver lining

💡 DMK Insight

Bitcoin’s drop below $100,000 is more than just a number—it’s a signal of shifting market dynamics. The Coinbase Premium hitting a seven-month low suggests that U.S. demand is faltering, which could lead to further price pressure. This is crucial for day traders and swing traders who rely on momentum; if the trend continues, we might see more selling as confidence wanes. However, onchain data indicating that short-term holders are buying the dip could create a potential floor for Bitcoin, suggesting a tug-of-war between bearish sentiment and opportunistic buying. Keep an eye on the $95,000 level as a critical support point; a break below could trigger more aggressive selling. Conversely, if buying pressure increases, it might lead to a short squeeze, pushing prices back up. Watch for volume spikes and any shifts in the Coinbase Premium as indicators of market sentiment. The next few days will be pivotal in determining whether this dip is a buying opportunity or a precursor to further declines.