Bitcoin Plunges Below $100K Despite Positive Coinbase Premium Signal – What’s Next?

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In early 2025, Bitcoin (BTC) displayed bullish yet volatile price movements. Lately, US investor sentiment seems to be changing, as evidenced by the data. Yesterday, it surged past $102,000, but has since failed to sustain its upward push, losing much of its recent gains and currently hovering just under $100,000.

These advancements align with significant perspectives drawn from essential on-chain indicators, providing a more transparent outlook for Bitcoin’s immediate future direction.

Bitcoin’s Price Struggles Despite Positive Coinbase Premium Index Signal

A researcher named Burak Kesmeci from CryptoQuant recently disclosed some insights about the Coinbase Premium Index (CPI). For the first time in 2025, this index showed a positive trend. The Coinbase Premium Index compares the price of Bitcoin on Coinbase to its value on other international trading platforms, providing valuable information about the investment attitudes of American investors.

3 days have passed since the Coinbase Premium Index exceeded its 14-day moving average for the first time in a month, and Bitcoin has risen by 4%, reaching a price of approximately $102,000.

In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K.

U.S. buyers could be back in action.

— CryptoQuant.com (@cryptoquant_com) January 6, 2025

At the same time as this favorable change, it’s worth noting that approximately 4,012 BTC were withdrawn from Coinbase, indicating increased interest among investors based in the US to buy Bitcoin. Precedents have shown that such withdrawals can lead to heightened buying pressure, which might pave the way for potential price increases.

Although there are encouraging signs, Bitcoin’s price growth has been somewhat limited. After momentarily hitting $102,000 on December 6th, Bitcoin dropped in value and is currently trading below $100,000, representing a minor 3.3% decline over the last day.

As a researcher examining the data, I’ve noticed that the highest value recorded for the top-ranked cryptocurrency by market cap is about 8.9% lower than its all-time peak of $108,135, which it reached in December 2024.

Bitcoin Faces Key Resistance Levels

It’s worth noting that the recent behavior of Bitcoin’s price indicates there’s a desire to buy, but this demand might not be intense enough to spark another significant surge at this moment.

As per the analysis of crypto expert Ali, Bitcoin has a crucial support level ranging from $95,400 to $98,400, at which approximately 1.77 million wallets together own around 1.53 million Bitcoins.

The support area is crucial in keeping Bitcoin’s value steady during market turbulence. Meanwhile, there isn’t much resistance to speak of, with just 107,000 Bitcoins available between $104,700 and $105,770. If the demand to buy increases significantly, this limited resistance could easily give way, potentially leading to a rise in Bitcoin’s price.

From my analysis perspective, I find Bitcoin currently comfortably resting above a crucial support area that stretches from approximately $95,400 to $98,400. This region is notable as it represents the aggregated purchase points of around 1.77 million wallets, collectively holding about 1.53 million Bitcoins.

Looking ahead, there seems to be limited resistance in the near term. The only discernible ‘supply wall’ lies between $104,700 and $105,770, comprising a relatively modest 107,000 Bitcoin. This underscores the potential for further upward price action if buying pressure continues to build.

— Ali (@ali_charts) January 7, 2025

Currently, financial experts generally maintain a positive stance towards Bitcoin. For example, Analyst Captain Faibik recently expressed his viewpoint about BTC, stating that it continues to indicate potential for an increase up to $112,000.

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2025-01-08 12:07