Key Insights
- •The recent dip in Bitcoin USD price is attributed to whale activity rather than spot ETFs, as indicated by the Coinbase Premium Gap (CPG).
- •Bitcoin (BTC) has failed to sustain its price above the $95,000 support zone, resulting in a decline of approximately $3,000.
- •Analysts suggest that BTC is not in a terminal decline but rather in an accumulation phase.
Bitcoin Price Facing Selling Pressure from Whales, Not ETFs
The Coinbase Premium Gap (CPG) indicator for Bitcoin (BTC) price recently fell to -14.78%, its lowest level in recent months. According to CryptoQuant, this indicates strong selling pressure from U.S. whale Bitcoin investors.
While Bitcoin USD continues to face downward pressure, market expectations remain high for a bullish move soon.
According to on-chain analytics data provider CryptoQuant, the Coinbase Premium Gap recently dropped to new lows.
The premium index measures the institutional interest that passes through Coinbase.
CPG measures the price difference between Bitcoin on Coinbase, a U.S.-based exchange, and global exchanges like Binance.
A positive CPG signifies that BTC is trading higher on Coinbase, suggesting strong U.S. buying demand, often from institutions or BTC whales accumulating.
Conversely, negative CPG values imply Bitcoin price trades lower on Coinbase, indicating weaker U.S. demand or active selling from U.S. participants.
According to analyst Mignolet, the Coinbase Premium Index is facing its strongest negative CPG in recent periods at -14.78. The analyst interprets this as intense selling pressure on Bitcoin.
Mignolet emphasized that this selling pressure originates from U.S. whales operating outside of the spot BTC exchange-traded funds (ETFs).
His sentiment is based on the observation that the selling pressure occurred during U.S. off-hours when ETF trading windows were closed.
This scenario results in non-U.S. buyers not absorbing the sales volume as aggressively, causing the Bitcoin price to be dragged lower more noticeably on Coinbase.
Historically, strongly negative CPG readings have served as short-term bearish signals, often coinciding with downward price momentum or corrections from U.S. traders.
Bitcoin USD Price Dump Analysis
At press time, the Bitcoin USD price has dropped 2.4% over the past 24 hours. The leading cryptocurrency is now hovering around $92,981, falling from its recent highs.
Amidst the sharp Bitcoin pullback, crypto analyst Ted Pillows shared an analysis of the price movement. Highlighting a chart, Pillows noted that BTC has failed to hold above the $95,000 support zone.
Last week, Bitcoin USD showed a buy signal with its price consistently holding above the $95,000 psychological support level.
However, its inability to maintain this level led to the Bitcoin price dropping roughly $3,000.
Following the price dump, BTC found temporary footing near $92,500. While Bitcoin has attempted to stabilize around this level, Ted Pillows pointed out a strong overhead resistance.
This suggests that any rebound attempt is likely to face heavy selling pressure.
The analyst is now anticipating how the U.S. market will open on January 20, 2025.
Aksel Kibar, a classical chart trader and former Fund manager, also shared his opinion on the recent BTC price movement.
Kibar highlighted that BTC price is consolidating below the long-term average.
The analyst utilizes a 365-day Exponential Moving Average (EMA), which smooths price data over approximately one year. He added that the Bitcoin price has not broken above this long-term average, indicating that the weakness is still present.
New Room for Spot Accumulations
In contrast to the bearish analysis from Kibar, Bitcoin enthusiast Emperor on X shared a bullish outlook.
Emperor began with a sarcastic greeting to crypto bears, those who believe the market is crashing or entering a prolonged downturn.
He asserted that Bitcoin is accumulating and quietly building strength, contrary to opinions that it is dying. Emperor attached a Bitcoin price chart to his post, which indicated that the coin is in an accumulation phase.
“Blue box zone looks like a good area to accumulate Spot buys,” Emperor emphasized.
The “blue box zone” refers to the area around the recent low of $90,000 for Bitcoin USD price. This level is considered attractive for spot buys as it represents a temporary dip within an overall uptrend.