Bitcoin Coinbase premium turns negative as BTC price stagnates below $63,000.

Bitcoin (BTC) reached a high of $64,448 on October 7 before briefly falling below $62,000. Although the weekly opening restored traders’ hopes for a strong October, today’s $62,000 drop is a sign that the bulls are not yet in control.

Bitcoin Coinbase Premium Maintains ‘Negative Momentum’

Data from CryptoQuant shows Coinbase premiums have remained significantly negative since early October, suggesting a lack of demand from Coinbase traders.

Coinbase premium is an indicator of demand from American individual investors. A rising value suggests strong buying pressure, while a negative value suggests selling pressure.

Cointelegraph previously reported a positive value for Coinbase Premium on September 27, which coincided with Bitcoin reaching a local high of $66,450.

There is currently clear selling pressure on Coinbase and the price is recovering strongly on the charts. In fact, independent trader Dom noted that a recent correction occurred at $64,400 after significant spot selling on Coinbase and Bybit.

CB sells the house again. pic.twitter.com/BSTa11A2I0

— Dom (@traderview2) October 8, 2024

Meanwhile, on-chain analyst XBTManager believes that ‘negative momentum’ means there is ongoing selling pressure from Coinbase retail, which is currently contributing to the near-term bearish outlook. In the X post, the analyst noted:

During the recent downturn, Coinbase appears to have halted its buying activity and initiated some selling. If this continues, it could have a significant impact on the market.

The analyst also highlighted that traders on Bitfinex and Deribit maintain selling pressure, while BitMEX and Huobi maintain steady buying interest.

Meanwhile, Bitcoin ETF inflows recorded a robust $235.2 million on October 7, the largest net inflow since September 27, when BTC hit its recent high.

So while there is noticeable buying interest from the likes of Blackrock ($97.9 million inflows) and Fidelity ($137 million inflows), retail traders on certain exchanges are not buying Bitcoin’s bullish recovery.

Can Bitcoin Stay Above Key Moving Averages?

After a strong bullish reaction on October 6, Bitcoin faced downward pressure after testing the supply zone between $63,300 and $64,200. BTC failed to close above $63,000 in the last 24 hours after falling 3% and is currently facing pressure to maintain positions above the 50-day and 100-day EMA levels.

Currently, Bitcoin is hovering above the 200-day EMA level, but another near-term bearish trend change could occur if it closes below $61,700. A position below the 200-day EMA opens the possibility of a re-sweep of the same low of around $60,000 set at the beginning of the month, as shown in the chart.

Meanwhile, cryptocurrency trader Theo Trader believes that the current price action is giving ‘mixed signals’, leaving open the possibility of ‘an accumulation phase of around $60,000’.