Bitcoin’s Surge: A New All-Time High and the Rising Coinbase Premium
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Bitcoin’s New Milestone: Breaking the $110,000 Barrier
Just yesterday, Bitcoin (BTC) surged past the $110,000 mark, reaching an unprecedented all-time high (ATH) of $111,999. Data from exchanges reveal that this surge was bolstered by a late rebound in the Coinbase Premium Gap, indicating a renewed spot demand from investors in the United States.
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The Role of Coinbase Premium in Bitcoin’s Breakout
A recent analysis by CryptoQuant contributor Enigma Trader highlights that the Coinbase Premium Gap rose from around 6.9 on July 7 to 48.8 by July 10. This shift signifies a rejuvenated interest in spot buying across the U.S., although it hasn’t yet surpassed June’s peak, where the metric soared beyond 80.
The Coinbase Premium Gap offers insights into Bitcoin’s pricing differences between Coinbase (USD pair) and Binance (USDT pair), serving as a measure of U.S. market demand. A positive premium suggests substantial buying pressure from U.S. investors, whereas a negative premium may point to diminished local interest or heightened overseas demand.
Enigma Trader pointed out that this recent Bitcoin surge wasn’t purely driven by derivatives trading. The elevated Coinbase Premium indicates significant buying action from U.S. investors. Nevertheless, the premium’s inability to reach June’s levels suggests some major investors are cautious about fueling the current rally, raising concerns about whether the bullish momentum can persist without stronger backing.
Potential Boost from Fresh Liquidity
Another analysis by CryptoQuant contributor SunflowrQuant proposes that Bitcoin might gain from new liquidity entering the market. The analyst identifies two pivotal metrics: the Stablecoin Supply Ratio (SSR) and the Moving Average Convergence Divergence (MACD).
For those unfamiliar, the SSR measures the available “dry powder” for purchasing BTC, calculated by dividing Bitcoin’s market cap by the total stablecoin supply. A higher SSR implies reduced buying capacity, whereas a lower SSR indicates ample capital ready for deployment.
Currently, the SSR has reached 18, its highest in two years. Concurrently, the MACD has crossed above its signal line, often a precursor to renewed market inflows and potential rallies. SunflowrQuant remarked that while Bitcoin is reaching new highs, this “new fuel” signal is promising. However, unless we witness increased volume and the SSR cooling toward the 16–15 range, the $113,000-$115,000 zone appears favorable for profit-taking, while a weekly close below $99,000 should signal a stop-loss.
Technical Analysis and Future Prospects
From a technical perspective, conditions remain optimistic. Analyst Merlijn The Trader recently observed that Bitcoin has broken out of a bullish descending broadening wedge pattern, potentially setting its sights as high as $144,000.
However, macroeconomic factors could pose risks. For example, if the U.S. Federal Reserve opts not to reduce interest rates, Bitcoin’s ascent might falter. At the time of writing, BTC is trading at $111,680, marking a 2.1% increase over the past 24 hours.
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