Bitcoin Buying Pressure Rises, But Here’s Why A Pullback Could Be Coming

Name	Symbol	Market	Market Cap ($)	Algorithm
Bitcoin	BTCUSD	Crypto	1,713,837,696,108	SHA-256d

Name

Symbol

Market

Market Cap ($)

Algorithm

Bitcoin

BTCUSD

Crypto

1,713,837,696,108

SHA-256d

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-1,123.04	-1.28%	86,800.36	86,800.35	86,800.36

Price Change

Price Change %

Current Price

Bid Price

Offer

-1,123.04

-1.28%

86,800.36

86,800.35

86,800.36

High Price	Low Price	Open Price	Prev. Close	52 Week Range
88,666.00	86,220.50	88,200.60	87,923.40	34,758.64 - 90,100.00

High Price

Low Price

Open Price

Prev. Close

52 Week Range

88,666.00

86,220.50

88,200.60

87,923.40

34,758.64 - 90,100.00

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	06:47:19	0.000285	86,800.36	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

06:47:19

0.000285

86,800.36

USD

Price x Volume	Volume	Base Symbol	Related Pairs
681,893,396.72	7,792.06	BTC	BTCEUR	BTCGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

681,893,396.72

7,792.06

Bitcoin Buying Pressure Rises, But Here’s Why A Pullback Could Be Coming

12/11/2024 6:00am

NEWSBTC

A recent analysis from BaroVirtual, a CryptoQuant analyst, offers a nuanced perspective on the current state of the Bitcoin market. According to the analyst, fluctuations in the Coinbase premium—a key metric that tracks the price difference between Bitcoin on Coinbase and other exchanges—can offer significant insights. Related Reading: Bitcoin ETFs See Historic Surge – Institutions Go Bullish On BTC With $1.38 Billion Record Inflows Retail Leverage And Premiums: A Double-Edged Sword Rising or elevated Coinbase premiums typically suggest intense buying pressure, indicating strong medium-term sentiment for Bitcoin. However, BaroVirtual warns that in the short term, these high premiums may present a double-edged sword, as they often precede a localized downward movement in Bitcoin’s price. This phenomenon stems from market dynamics, as high premiums reflect surges in demand that can lead to overheating. When this occurs in combination with a high volume of leveraged retail positions and an excessive number of long contracts, the risk of a market pullback increases. Notably, BaroVirtual pointed out that this scenario has been evident in some Asian exchanges, where traders’ aggressive positions and leveraged setups further amplified market vulnerabilities. The analyst’s observations extend beyond the Coinbase premium to the broader market context. When premiums soar, they signal strong demand and positive sentiment among investors. This can provide a floor for Bitcoin’s price, strengthening support levels and creating a bullish sentiment over the medium term. However, in the short run, the influx of highly leveraged retail positions can destabilize market balance, leading to sharp corrections. High leverage implies that even minor price swings can force liquidations, exacerbating downward price movements. The CryptoQuant analyst emphasized leverage dynamics’ major role in determining bullish trends’ sustainability. Retail traders’ aggressive positioning on some Asian exchanges reflects a growing risk appetite, which may lead to sudden market shifts if sentiment turns or if premiums dip. Bitcoin Nears $100,000 After previously trading just above $83,000 earlier today, Bitcoin’s price has now pushed further. So far, BTC has achieved a latest all-time high of (ATH) of $84,929 less than an hour ago. However, the asset has seen a slight correction with a current trading price of $84,929, at the time of writing. Regardless of this slight pullback, with the current bullish momentum in Bitcoin, it is evident that the asset could continue this rally and rise above $85,000 soon, bringing it closer to a six digit ATH of $100,000 and beyond. Related Reading: Bitcoin Stock To Flow Model Reveals $500,000 Price Target Renowned crypto analyst known as Javon Marks on X has highlighted that Bitcoin still has “more upside coming” especially since it recently broke above a descending broadening wedge pattern. Prices of $BTC (Bitcoin), after breaking out of this descending broadening wedge pattern, have been climbing MAJORLY, moving roughly +24% since but there can still be much more upside coming! The measured breakout target is another near 20% away just around the $100,000 mark and… https://t.co/F01HbCd1kv pic.twitter.com/k0bv9xqUwK — JAVON⚡️MARKS (@JavonTM1) November 11, 2024 Featured image created with DALL-E, Chart from TradingView

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