This Happened on Coinbase’s Bitcoin Premium Index Before BTC Plunged to $66K

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This Happened on Coinbase’s Bitcoin Premium Index Before BTC Plunged to $66K
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In the past few days, Bitcoin has fallen from its newly recorded highs to levels not seen in a week, triggering millions in liquidations. Analysts have revealed that the Coinbase Bitcoin Premium Index flashed a bearish signal before BTC slumped.by CryptoQuant, the Coinbase Premium Index dipped below 0.05 some hours before the price of BTC fell more than 7% to $66,000 on Friday and even further on Sunday.

A negative trend in the Coinbase Premium Index usually signals a short-term correction within a bullish market, amplifying the likelihood of a pullback and eastside movement in the near term. This also indicates that BTC is unlikely to witness an immediate price increase. The premium’s fall below 0.05 underscored a period of weakened buying pressure from United States investors. The price correction that followed was one analysts deemed necessary. On-chain analysis platforms like CryptoQuant and Bitfinex alsothat popular technical analyst CryptoCon said a 20% price correction is necessary for BTC before the asset takes off to new levels. As there are warning signs BTC could go lower, the asset may lose roughly 6% more of its value in the coming days.

CryptoCon expects BTC to reach a cycle top in the coming three to nine months after the current cooling period, per historical data from the Directional Movement Index , an indicator that measures an asset’s strength and direction while diminishing potential false signals.over 190,000 traders with a total value of approximately $700 million. The single-largest wrecked position was more than $13 million on the crypto exchange OKX.

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