The leading cryptocurrency Bitcoin (BTC) fell to $ 18,600 with its decline yesterday. Trying to recover its losses, Bitcoin closed the month with $ 19,942. With this closing, BTC closed below the monthly MA50 level for the first time in its history.
Commenting on the declines in Bitcoin and crypto markets, analysts say that Bitcoin (BTC) and altcoins under its leadership are experiencing the worst quarter ever. Analysts also say that a bottom signal is seen when looking at technical data and charts. In this context, CryptoQuant CEO and analyst Ki Young Ju, who shared on his Twitter account, examined the Coinbase Premium Index and shared his views.
Ki Young Ju noted that the Coinbase Premium Index closed in a positive number as of June 30, and the indicator has turned positive for the first time since the market sell-off in April 2022. This means that institutional investors are no longer actively selling, but are buying large volumes of spot BTC, pushing the index into the premium range.
The Coinbase Premium Index is a tool used to determine the difference between Bitcoin price on Coinbase Pro and exchanges like Binance. The premium of the index reflects whether institutional investors are actively selling or buying in the spot market. Commenting on this situation, CryptoQuant CEO Ki Young Ju states that while the Coinbase Premium Index turned positive and the increase in premium does not indicate a bull run, he says that there are institutional buyers in this price range.
Will Bitcoin Make a Leap?
Previously, indicators such as the flow of funds to major funds and lenders, MVRV and four-year trends suggest that Bitcoin is poised for an uptrend, but the expected bounce in BTC price has not arrived. Even if every indicator in the markets indicates that it is time for Bitcoin to bounce up, volatile upward movement is unlikely in Bitcoin or any other cryptocurrencies due to the lack of money entering the markets. According to the volume indicator, currently trading volume on various centralized exchanges is below the yearly average. This means that traders and investors do not sell or buy the cryptocurrency they hold.