Bitcoin surged to an intraday high of $102,599 on Monday, fueled by renewed investor optimism as US President Donald Trump delayed tariffs on Canada and Mexico.
This policy shift has triggered a surge in buying activity among American investors, pushing the Coinbase Premium Index to its highest level of the year.
US-Based Investors Increase Their Coin Holdings
Bitcoin’s Coinbase Premium Index currently sits at 0.12. This marks a 700% surge following confirmation that tariffs on Canada and Mexico would be delayed for another month.
This move has reignited buying pressure among American investors, who swiftly resumed accumulating Bitcoin. This has driven the Coinbase Premium Index to its highest level since the beginning of the year.
Bitcoin’s Coinbase Premium Index measures the difference between coin prices on Coinbase and Binance. When its value grows above zero, it suggests significant buying activity by US-based investors on Coinbase.
Conversely, when it declines and dips into the negative territory, it signals less trading activity on the US-based exchange.
A positive Coinbase Premium Index is a bullish signal for BTC’s price. This means the coin is trading at a higher price on Coinbase as demand from US-based investors strengthens. Increased buying pressure from American institutional and retail traders like this often drives BTC’s price higher, pushing the market upward.
Moreover, in a recent report, pseudonymous CryptoQuant analyst Avocado_onchain finds that BTC’s Short-Term Spent Output Profit Ratio (STH-SOPR) currently suggests that the coin’s price corrections are becoming shallower. This indicates stronger market confidence among short-term investors.
BTC’s STH-SOPR gauges the profitability of its short-term holders. It offers insights into whether investors who have held the coin for three to six months are profitable or unprofitable.
According to Avocado_onchain, unlike past cycles where sharp price drops triggered panic selling, the current bull market shows fewer short-term holders selling at a loss, reinforcing Bitcoin’s resilience.
“Of course, unforeseen macroeconomic shocks such as a global market downturn like the COVID-19 crash could trigger a deeper correction. However, in the current bull market, price pullbacks are likely to remain within the 20-30% range before Bitcoin resumes its upward trend,” the analyst noted.
BTC Price Prediction: Will Bulls Break Through or Retrace to $95K?
BTC currently trades at $98,463, slightly below the crucial resistance formed at $102,538. While Trump’s policy shift has triggered a wave of accumulation among traders, readings from the coin’s Moving Average Convergence Divergence (MACD) suggest that bearish pressure remains strong.
At press time, the coin’s MACD line (blue) rests below its signal line (orange). When this indicator is set up this way, it indicates bearish momentum. This means that selling activity outweighs buying efforts, putting downward pressure on the asset’s price.
If this pressure persists, BTC’s price could extend its decline to $95,513.
Conversely, if the bulls regain market dominance, the coin’s price could break above the $102,538 resistance level and attempt to revisit its all-time high of $108,388.
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