Coinbase Bitcoin Premium Index extends historical negative streak as risk appetite deteriorates
- Coinbase Bitcoin Premium Index has remained in negative territory for 78 consecutive days, marking its longest negative streak in record.
- Currently at -0.1145%, it measures the BTC price gap between Coinbase and other exchanges.
- The Index gauges BTC interest in the US, with sustained negative periods indicating weaker demand or increasing selling pressure.
The Coinbase Bitcoin Premium Index extends its negative streak to 78 consecutive days on Tuesday, the longest on record. This reading comes amid the ongoing bearish trend, which has seen Bitcoin (BTC) drop by almost 50% from its record high to trade around $64,000.
Coinbase Bitcoin Premium Index extends bearish streak
According to CoinGlass, the Coinbase Bitcoin Premium Index has remained in negative territory for 78 straight days, the longest downtrend ever recorded, with the latest figure at -0.1145%.
This index tracks the price differential of BTC between Coinbase and other major exchanges, serving as a key gauge for US market appetite.
Prolonged negative values signal that Bitcoin continues to trade at a discount on Coinbase, suggesting subdued demand from American investors or heightened selling activity.
Sentiment in the broader crypto market aligns with the dominant bearish trend, as reflected in the Fear & Greed Index. Currently embedded in the Extreme Fear territory at 25 on Tuesday, from 28 in the Fear region the day before, appetite for risk assets could continue to deteriorate.
However, Bitcoin’s downside appears protected in the $60,000-$62,000 range, encouraging investors to remain patient for a potential breakout above July highs near $67,000.
“Week-over-week, crypto has remained remarkably resilient despite the broader market noise, with BTC finding solid support around the USD 63,000 level,” analysts at Crypto Finance highlighted.
Technical analysis: Bitcoin tests recovery potential
Bitcoin trades around $64,015, retaining a bearish near-term bias as price holds below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) at $64,662, $67,142 and $72,712, respectively.
The pair also remains under the downward resistance trendline break point at $64,690, suggesting rallies are still capped, while the Moving Average Convergence Divergence (MACD) indicator stays negative and below zero on the daily chart, hinting at persistent downside pressure despite a neutral Relative Strength Index (RSI) reading near 50.
Initial resistance lies at the 50-day EMA around $64,662, followed closely by the descending trendline break level at $64,689, which together define a nearby supply cluster that bulls must reclaim to ease the bearish tone. Above there, the 100-day EMA at $67,142 and the 200-day EMA near $72,713 emerge as successive resistance barriers, and only a sustained move over these longer-term averages would suggest a more durable shift away from the current downside bias.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
