Yesterday, Bitcoin (BTC) finally broke above $110,000, hitting a fresh all-time high (ATH) of $111,999. Exchange data indicates that this latest surge was supported by a late rebound in the Coinbase Premium Gap, signalling a resurgence in spot demand from US investors.
Bitcoin Breakout Supported By Coinbase Premium Recovery
According to a recent CryptoQuant Quicktake post by contributor Enigma Trader, the Coinbase Premium Gap jumped from approximately 6.9 on July 7 to 48.8 by July 10. While this indicates renewed spot buying interest in the US, it still falls short of the June peak, when the metric exceeded 80.
To explain, the Coinbase Premium Gap measures the difference in Bitcoin’s price between Coinbase (USD pair) and Binance (USDT pair), helping gauge US spot market demand. A positive premium suggests strong buying pressure from US investors, while a negative premium may indicate weaker domestic interest or stronger overseas demand.
Enigma Trader emphasized that Bitcoin’s recent breakout wasn’t solely driven by derivatives. Instead, the growing Coinbase Premium suggests meaningful spot buying activity from US investors.
However, the premium’s failure to match its June high implies that some large investors remain hesitant to chase the current rally – casting doubt on whether the bullish momentum can be sustained without stronger follow-through.
BTC To Benefit From Fresh Liquidity?
In another CryptoQuant Quicktake post, contributor SunflowrQuant suggested that Bitcoin could benefit from fresh liquidity entering the market. The analyst pointed to two key metrics – the Stablecoin Supply Ratio (SSR) and the Moving Average Convergence Divergence (MACD).
For the uninitiated, the SSR reflects the amount of “dry powder” available to purchase BTC. It is calculated by dividing Bitcoin’s market cap by the total supply of stablecoins. A higher SSR suggests reduced buying power, while a lower SSR indicates an abundance of capital waiting to be deployed.
Recently, the SSR has surged to 18 – its highest level in two years. Meanwhile, the MACD has also crossed above its signal line, a move that often precedes renewed market inflows and rally potential. SunflowrQuant added:
While price is carving new highs, this “new fuel” signal is promising; still, unless we see expanding volume and SSR cooling back toward the 16–15 zone, the $113,000-$115,000 area looks attractive for profit-taking, whereas a weekly close below $99,000 should be treated as a stop-loss trigger.
From a technical standpoint, conditions remain favorable. Analyst Merlijn The Trader recently noted that BTC has broken out of a bullish descending broadening wedge pattern and may now be targeting as high as $144,000.
However, macroeconomic risks remain. For instance, if the US Federal Reserve chooses not to cut interest rates, Bitcoin’s rally could stall. At press time, BTC trades at $111,680, up 2.1% in the past 24 hours.
Featured Image from Unsplash.com, charts from CryptoQuant and TradingView.com
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