Bitcoin Coinbase Premium Hits 7-month Low But Traders Spot A Silver...

Bitcoin dipped below $100,000 as the Coinbase Premium hit a seven-month low, signaling weak US demand. Onchain data hints that short-term holders may be buying the dip.

Bitcoin dropped below $100,000 and could retest its yearly open at $93,500 as its momentum weakens.

The Coinbase Premium hit a seven-month low, reflecting strong US spot Bitcoin selling pressure.

Short-term holders are accumulating BTC, while long-term holders continue taking profits.

Bitcoin’s (BTC) recent weakness extended into Friday’s trading session, with BTC once again slipping below the $100,000 mark. The cryptocurrency could potentially retest its previous low of $98,200, a level formed on June 23.

On Thursday, the Bitcoin Coinbase Premium Index, a metric that tracks the difference between Bitcoin’s price on Coinbase and other global exchanges like Binance, dropped to its lowest level since April 11.

The premium turning negative implied that Bitcoin is trading at a discount on Coinbase, often reflecting stronger selling pressure from US-based investors and ETF-related outflows. Historically, extended periods of negative premiums have coincided with short-term price weakness.

However, Crypto trader Daan Trades noted that such phases are not unusual during broader downtrends. The analyst wrote that the discount tends to emerge when the market faces concentrated spot selling from Coinbase-linked flows. While not a bullish sign in itself, Daan wrote,

In other words, a sustained price recovery following this discount could signal that the market is absorbing sell pressure, potentially marking the early stages of accumulation.

Onchain data further supported this mixed setup. The short-term holder (STH) net position change recently surged to a yearly high, suggesting that traders who typically hold coins for less than 155 days are adding to their positions despite the pullback.

Source: CoinTelegraph