Bitcoin Recovers as Coinbase Premium Turns Higher

💡 DMK Insight

Bitcoin’s recent 12% rally is impressive, but here’s why traders should stay cautious: The surge coincides with a rising Coinbase Premium, which often indicates increased demand among retail investors. However, this could also signal a short-term spike rather than a sustainable trend. Traders should be wary of overextending positions based on this rally alone, especially given the broader market’s volatility. Key resistance levels around previous highs could act as a barrier, so keep an eye on how Bitcoin behaves near those points. If it fails to break through, we might see a pullback that could shake out weaker hands. On the flip side, if the rally continues and the Coinbase Premium remains elevated, it could attract institutional interest, potentially leading to a more robust uptrend. Watch for volume spikes and sentiment shifts as indicators of whether this rally has legs. For now, monitor Bitcoin’s price action closely, especially around critical levels over the next week.