The decline in the price of Bitcoin in recent days has led to a decrease in trading activity among US investors. They began to gradually unload their BTC reserves.
Bitcoin (BTC) lost 6% in four days, facing strong resistance at $99,000. This prompted US investors to begin gradually reducing their holdings.
Bitcoin owners in the US are cautious
CryptoQuant data showed a decline in the Coinbase Premium Index for BTC over the past seven days. It is now below zero and at a seven-day low of -0.01.
The metric measures the difference in the price of Bitcoin on Coinbase and Binance. It tracks the activity of institutional and US-based investors, as Coinbase is the platform of choice for these two groups. A negative value indicates that the price on Coinbase is lower than on Binance. This indicates weak demand or selling pressure from US investors.
The low purchasing activity of US investors is also reflected in the Coinbase Premium Gap metric. The figure fell to a seven-day low of -10, according to CryptoQuant.
It also measures the difference in BTC price between Coinbase Pro (USD) and Binance (USDT). A positive gap indicates strong buying pressure from US investors on Coinbase, indicating strong demand. A negative gap implies weak demand from US investors.
BTC Forecast: Downtrend May Continue
On the daily BTC chart, the Parabolic Stop and Reverse indicator points (SAR) are located above the price, confirming the downward trend. This is the first time such an arrangement of points has been observed since November 6.
Bitcoin is currently trading above the $88,630 support level. If the downward trend continues, the coin could break through this support and fall to $80,159.
However, if sentiment changes and buyers return to the market, BTC could recover to its all-time high of $99,419.
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Source: Cryptocurrency
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