Bitcoin (BTC) has now declined for 3 days in a row, falling below $66,000 through the New York session on Wednesday. The decline got here after a failed rise above $70,000 as weak buying interest allowed sellers to stay on top of things.
On-chain data suggests that the pullback could also be attributable to spot sales on Binance, while the shortage of a Coinbase premium through the US market session suggests muted participation from US investors.
Key Takeaways:
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The Coinbase Premium Index signals muted US investor participation at current price levels.
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The cumulative volume delta (CVD) continues to trend lower, reflecting continued net selling pressure.
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Data shows that the 30-day recent money flow has turned negative to around -$2.8 billion.
Coinbase premium and futures data shows that bears proceed to dominate
The Coinbase Premium Index measures the difference between BTC prices on Coinbase and other exchanges like Binance. A positive premium reflects strong spot demand within the US.
The indicator continued to indicate a negative premium this week, suggesting limited exposure from US investors.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
Meanwhile, Bitcoin’s cumulative volume delta (CVD) on Binance has increased to -$5.7 billion. CVD's regular string of lower highs suggests continued selling pressure out there quite than accumulation.
Given Binance’s dominant market volume, the negative delta suggests that spotty sell orders could lead on the downtrend.
The bid-ask ratio remained negative, showing that sell orders consistently outweighed bids during recovery attempts. Although the ratio has turned barely positive (around 0.14), it looks more like a short-term response than true spot buying support.
Bitcoin price, cumulative volume delta, open positions. Source: Hyblock Capital
Aggregate open interest also trended lower, falling to $17.6 billion from $20 billion on Monday. This suggests that leverage is step by step being reduced and long positions are being closed quite than constructing recent exposure.
CryptoQuant’s data further reinforces the shortage of spot demand below $70,000. The 30-day cumulative recent money flow has turned negative and stands at around -$2.8 billion, while recent every day values remain subdued at around -$239 million.
Unlike previous uptrends where price declines attracted large capital inflows, current price declines are usually not resulting in significant inflows.
Bitcoin's recent investor flow. Source: CryptoQuant
The portion of “young supply” (0-1 month), representing recently moved coins, has also cooled towards the lower end of its recent range near 13%, reflecting lower speculative participation from traders.
Strong rallies are often accompanied by increasing talent supply, increasing capital inflows and increasing open interest, all of that are currently missing.
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