UPDATE: Bitcoin’s price shows significant signs of recovery as the Coinbase Premium Index turns positive for the first time in nearly a month, indicating a potential surge in U.S. buying strength. Currently, Bitcoin (BTC) is trading at approximately $91,000, with critical resistance at $90,000. Analysts believe a break above $95,000 is essential for the cryptocurrency to regain upward momentum.
This sudden shift comes as stablecoin balances on Binance reached a record high of $51.1 billion in November, suggesting an influx of capital poised to enter the market. Despite this positive movement, overall sentiment remains cautious, with only one in seven major tokens showing gains over the past day.
The Coinbase Premium Index, which tracks the price spread between Coinbase and the global market, acts as a critical indicator of U.S. capital flows. A negative print typically signals domestic outflows or risk aversion among U.S. institutions. Conversely, a sustained positive print suggests renewed dollar liquidity and ETF-driven buying.
Thursday marked a pivotal moment as Coinbase spot prices began trading consistently above global averages, a trend not seen since late October. Flows indicate that the market is ready for growth, with options desks reporting a resetting of positions and easing of extreme bearish sentiment.
However, Bitcoin remains trapped between two key levels. FxPro’s Alex Kuptsikevich warns that the $90,000 mark, which served as a reaction zone earlier this year, may now act as resistance. Bulls must secure a firm break above $95,000 to reclaim the upward trend. A drop below $87,000 could reopen the path toward $80,000, extending the capitulation phase experienced in November.
Despite this, the sentiment index has climbed to 25, signaling a move away from extreme fear, though not yet indicating a complete psychological shift. The overall cryptocurrency market cap remains near $3.1 trillion, reflecting the mixed sentiment among investors.
In related news, research firms Kronos and Presto described the recent price bounce as a standard oversold recovery following a two-week period of leveraged wipeouts. The crypto market is watching closely as these developments unfold, with traders eager to see if Bitcoin can maintain its upward trajectory.
As of now, all eyes are on Bitcoin’s performance as it approaches critical resistance levels. The urgency to monitor these developments cannot be overstated, as the market is poised for potential volatility in the coming days. Stay tuned for more updates on this rapidly evolving situation.
