The Coinbase Premium Index has crossed the 14-day Simple Moving Average (SMA14), signaling renewed U.S. buyer activity as Bitcoin surges past $102,000.
After crossing $96,000 on New Year’s Eve, Bitcoin experienced a quick dip below $93,000. However, strong buyer activity propelled the price upward, leading to an impressive recovery that has set the stage for further gains.
Following a swift correction to $93,000, Bitcoin rebounded to $97,000 by January 2, underscoring robust market activity. Despite a $1,000 pullback, momentum built again, pushing the price to $99,000.
As of this press, Bitcoin has reached $101,866, marking a 2.25% gain in the past 24 hours and a 10.17% increase over the week. The rally aligns with increased trading interest, notably on U.S.-based exchanges, reflected in the Coinbase Premium Index.
Are U.S. Buyers Back in Action?
The Coinbase Premium Index, which tracks Bitcoin’s price difference on Coinbase versus other exchanges, recently crossed above its 14-day SMA for the first time in nearly a month. CryptoQuant highlighted this crossover, which occurred when Bitcoin was valued at $98,100, as a potential signal of renewed U.S. buyer activity.
Following this, Bitcoin climbed 4% to $102,000. A similar pattern in November 2024 saw Bitcoin rally from $69,000 to $108,000, suggesting historical consistency in the metric’s predictive power.
3 days ago, Coinbase Premium Index crossed SMA14 for the 1st time in 26 days—Bitcoin is now up 4% to $102K.
In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K.
U.S. buyers could be back in action. pic.twitter.com/XtAlHUzzvv
— CryptoQuant.com (@cryptoquant_com) January 6, 2025
Strong Overall Holder Positions
Supporting the bullish outlook, on-chain data from IntoTheBlock revealed that 95.11% of Bitcoin wallet addresses, equivalent to 51.35 million holders, are currently in profit. These addresses acquired Bitcoin below the current price. Conversely, only 1.46% of addresses, or 788,720 wallets, remain at a loss, with purchases made at higher price levels.
Notably, 3.43% of addresses, or approximately 1.85 million wallets, are at break-even, having bought Bitcoin at its current price. This data points to a low likelihood of capitulation-driven selling pressure. As the price trends upward, these addresses may hold their positions, potentially sustaining market momentum.
Derivatives Data Reinforces Bullish Outlook
Further adding to the bullish sentiment, Bitcoin’s open interest in derivatives markets climbed by 2.69% to $57.81 billion as of January 6, signaling growing trader activity.
The long-to-short ratio also turned bullish, surpassing the threshold of 1, reflecting an increased preference for long positions. Additionally, the funding rate rose to 0.0103%, indicating that traders are paying a premium to maintain bullish bets.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
