Bitcoin started the week on a positive note, soaring past the $122,000 mark. However, shortly after, the Coinbase Premium Index showed a negative value, raising questions among market participants.
Changes in Coinbase Premium Index
The price of Bitcoin sharply increased on Monday, reaching $122,319. This surge was driven by strong demand from institutional investors and companies building their Bitcoin treasuries. However, the Coinbase Premium Index soon turned negative, indicating that selling pressure could be stronger on Coinbase than on Binance. On-chain analyst Maartunn noted this shift and suggested a 'pump and dump' pattern might be forming.
Key Support and Resistance Levels
Analyst Rekt Capital pointed out that Bitcoin regained the $117,200 level, which had acted as resistance previously. The next barrier stands at $123,000, with $125,000 seen as the next target if the coin surpasses this level. Market participants expect a push beyond recent highs, but volatility remains high, posing liquidation risks for leveraged traders.
Institutional Interest and Market Outlook
August has seen significant institutional involvement in the market. Bitcoin-linked products are gaining traction, with more firms incorporating them for clients. For instance, Michael Saylor hinted at a new Bitcoin buy for his strategy. Analysts state that the change in the Coinbase index does not confirm a trend change but may indicate a shift in activity on one of the largest U.S.-based exchanges.
If Bitcoin can break through the $123,000 level and hold above it, it could pave the way for new record highs. Otherwise, the market could retest lower support levels around $115,000. The impact of inflation data and other macroeconomic factors may play a crucial role in the next moves.
