Bitcoin’s upward surge Sunday night lost steam near $79,400, with the price sliding back to $77,000 today. Signs of short-term weakness are emerging across the cryptocurrency market, suggesting Bitcoin is now facing significant resistance in the near term.
Coinbase premium turns negative
The Coinbase premium index, which measures the price gap between U.S.-based Coinbase and overseas exchanges, has turned negative for the first time since April 8. According to Coinglass data, the index dropped to minus 0.04 percent, indicating lower demand from American institutional investors.
Over the past two weeks, the index had been firmly in positive territory. This reflected strong buying by U.S. investors and drove Bitcoin’s price from $66,000 up to $79,000. However, the move back into negative signals a decline in U.S.-based buying appetite. The market’s momentum now relies more heavily on demand from foreign exchanges.
A negative turn in the Coinbase premium often coincides with short-term price corrections or sideways movement, according to industry analysts.
Bitfinex whale holds position
The so-called Bitfinex whale, well known for sizable Bitcoin holdings and closely watched by market observers, is currently sitting on 79,342 BTC—around the cycle’s peak level. This investor has a history of reducing holdings either after clear local bottoms or as strong upward moves begin to accelerate.
With no change in the whale’s position, even as Bitcoin climbed above $79,000, there’s an implication that upward potential could be limited for now. This dynamic increases the risk of a short-term price decline.
Short-term holders face pressure as Bitcoin dips
Bitcoin has failed to stay above $79,200, the average cost basis for short-term holders. This key level tracks the average entry price for investors holding BTC for 155 days or less. As long as the market trades below this level, recent buyers may continue selling, which keeps downward pressure on the price.
At the same time, one of the year’s most important cryptocurrency events, the Bitcoin conference, has kicked off. Historical analysis of similar conferences suggests Bitcoin often experiences a clear pullback after rallies around these events.
