The impulse of bitcoin bulls, who started a fast run towards the end of 2020, started to decrease. The competition between the bulls and bears has been going in the range of $ 31,000 to $ 35,000 for some time. Some names think that this range can be maintained for a while.
As Bitcoin went above $ 30,000, 10 percent volatility in the market started to get more frequent. As an example of this happened this week, the price of bitcoin fell from $ 35,000 to $ 31,000. Some crypto analysts think these two levels could form a curtain.
Coinbase bulls begin to weaken
According to CryptoQuant CEO Ki Young Ju, the strength of bitcoin bulls can be controlled by looking at the overall situation at Coinbase. Whenever the Bitcoin price has encountered a critical hurdle lately, Coinbase has started to create a $ 50 premium. This; It also happened when bitcoin exceeded $ 20,000, $ 30,000, or $ 40,000.
This premium; It was an indication that the demand of the institutional investor for bitcoin was growing. However, this premium started to decline at the beginning of the week. Ki Young Ju says bitcoin in its current form is not strong enough to break “critical resistance points”. The name referring to Stablecoin reserves, “If no money enters the stock market, the bull run ends.” used the expression.
According to CryptoQuant CEO, rebounding of Coinbase bonuses could positively affect the price.
Miners started selling
Joseph Young, another analyst, agrees with the idea that the bulls may be getting weaker. He suggests looking at miner reserves as well as the Coinbase premium. CryptoQuant data from January 25 indicates that miners have started selling in large volumes.
Increasing selling pressure put more strain on the bulls. Joseph Young; He said that Bitcoin could be squeezed into the range of $ 31,000 to $ 35,000 in the short term.