Why Bitcoin May Not Stay Below $80,000 for Long
Emerging positive indicators suggest Bitcoin selling pressure is easing, potentially leading to a recovery above $80,000 soon.Summary
Despite a rough start to February marked by significant crypto fund outflows, early data suggests selling pressure on Bitcoin is gradually easing, hinting at a potential recovery from below the $80,000 level.
One key positive signal is the recovery in the Coinbase Bitcoin Premium Index, indicating that US buying demand via Coinbase is slowly returning, which historically precedes a price reversal when it moves from negative to positive.
Furthermore, Bitcoin trading below the average cost basis of US Bitcoin ETF funds (around $79,000) is seen as a strong demand support zone where institutional investors are unlikely to sell at a loss. Adding to the optimism, Swissblock noted a positive convergence between network growth and liquidity, a pattern last seen in 2021 before a new all-time high, suggesting a potential recovery rally, although some analysts like Alex Thorn warn that weakness could persist toward $58,000 due to declining liquidity.
(Source：BeInCrypto)