BTC demand cools after Fed’s presser and volatility ramps up

The key takeaways

• Bitcoin’s Coinbase Premium went negative following a streak of 62 days.

• BTC remains above $115,000, despite increasing sell pressures and a CVD negative for futures.

Bitcoin) (BTCCoinbase Premium Index turned The market has been negative since May 29 after 62 consecutive days of positive trading. The BTC/USD/BTC/USDT price differential between Binance BTC/USDT and Coinbase is often used as an indicator of US spot market demand.

The market’s shift follows a 94-day streak of sustained premium gaps, which marks Bitcoin’s highest institutional demand on record. The flip might indicate a waning interest from US investors, but broader signals show a nuanced market setup.

The onchain analyst Boris VestBitcoin’s buy/sell taker ratio dropped from 1.9 to 0.9. This indicates increased sales by market makers. Bitcoin continues to trade above $115,000 despite the aggressive selling. This indicates that passive large buyers are taking over to relieve the pressure. 

While the rate of futures financing remains at 0,01, it does not show a bullish or a bearish dominant, which indicates that the leverage is equal and there will be a bigger move. 

Vest highlighted the fact that futures’ CVD (cumulative volume delta) is continuing to show persistent selling pressure, without any significant breakdown in prices. Volume and price divergence suggests strength in the underlying market and could set up a shakeout driven by liquidity before any sustained upward movement.

Related: Bitcoin price gained 50% the last time its volatility fell this low

Bitcoin at a Crossroads Moment

Profit-taking appears to have also slowed down. The NRPL (Net Realized Profit/Loss) metric shows There is no sign of large scale exits and the adjusted SOPR stays well below the 1,10 threshold that’s usually associated with the top of the market. These indicators indicate that investors have confidence in the current structure of the market, and they aren’t rushing to lock up profits.

This view is further supported by macro conditions. This view is further supported by macro conditions. “Goldilocks” Risk assets are favored by the current economic backdrop. In the meantime, consumer confidence recovered after a decline of six months, indicating a wider recovery in investor sentiment.

Bitcoin is in neutral territory, with the Federal Open Market Committee meeting (FOMC), the most likely event to determine the direction of the Bitcoin price. Titan of Crypto commented that the Bollinger Bands were tightening, which is a technical indicator used to measure volatility. These bands often compress when a significant breakout or breakdown nears. Analyst said, 

“Bitcoin in a pressure cooker. Bollinger Bands are squeezing = volatility is drying up. RSI is compressing too. A big move is brewing.”

Related: Bitcoin bulls aim to chase liquidity at $122K, but Q3 seasonality could stall breakouts

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.