Originally published on: October 08, 2024
Bitcoin’s price took a brief dip below $62,000 after hitting a high of $64,448 on October 7. Despite a strong start to the week that raised hopes for a bullish October, the recent pullback suggests that bulls have yet to establish control.
According to data from CryptoQuant, the Coinbase premium has been consistently negative since the start of the month, indicating a lack of demand among Coinbase traders. The premium serves as an indicator of demand from US retail investors, with a positive value signaling buying pressure and a negative value suggesting selling pressure.
Previously, a positive Coinbase premium on September 27 coincided with Bitcoin hitting a new local high of $66,450. However, recent data reveals selling pressure from Coinbase traders, leading to a correction in prices. Independent trader Dom noted significant spot selling on both Coinbase and Bybit, contributing to the recent decline from $64,400.
On-chain analyst XBTManager points to a negative momentum driven by persistent selling pressure from Coinbase retail investors, painting a short-term bearish outlook. Despite strong inflows from Bitcoin ETFs, retail traders on certain exchanges are hesitant to buy into Bitcoin’s bullish recovery.
Following a pullback from the $63,300 to $64,200 supply zone, Bitcoin struggles to maintain support above $63,000 and faces pressure to hold onto its 50-day and 100-day EMA levels. A close below $61,700 could signal a shift towards a short-term bearish trend, potentially testing the $60,000 support level again.
As the market displays mixed signals, with potential accumulation around $60K, traders are advised to proceed with caution and conduct thorough research before making investment decisions. Stay updated with critical insights, investment opportunities, and trading strategies by subscribing to our Markets Outlook newsletter now.
