In an important move at the beginning of the week, Bitcoin he revisited the $100,000 milestone again. The move sparked a new wave of optimism among crypto enthusiasts as several key metrics also saw positive moves near recent highs.
BTC’s Market Dynamics Is Going Through a Shift
Bitcoin market strength is showing signs of a bullish turn as measured by the Coinbase Premium Index it is moving in a positive direction. The recent increase in the price of Bitcoin seems to have caused a significant change in an important metric.
This indicator, which shows the price difference between Bitcoin on Coinbase and other crypto exchanges, usually serves as an indicator of growing demand from US-based institutional investors. As the metric turns positive, this change suggests renewed market confidence in Bitcoin’s prospects, which could trigger the next price rally.
It is important to note that the development comes after the Coinbase Premium Index saw a further decline, falling to a 12-month low. Just before the US Presidential election, the metric dropped to -0.200 in October last year due to increased uncertainty within the sector. Meanwhile, on the last day of 2024, the index fell sharply to around 0.237, the lowest level in the last 12 months.
In addition, a sharp drop was developed increased selling pressure in US markets after BTC rejected the $91,500 price level. In general, a significant drop in the Coinbase Premium Index can lead to an unfavorable position for the short-term Bitcoin price trajectory.
With the key metric turning positive for the first time in 2025 in line with a rise above $102,000, BTC’s near-term prospects look promising again. Data from the leading analysis company CryptoQuant shows that the index has risen to almost 0.001.
Speaking about the impact of US investors on the market, the platform revealed that their actions have served as the leading indicator of the crypto market since Spot Bitcoin Exchange-Taded Funds (ETFs) were approved.
At 18:04 local time, Coinbase reported the output of one block of 4,012 BTC, in addition to the Coinbase Premium Index turning positive. This data means that buying pressure has once again become a dominant factor in the behavior of US investors.
Upside Momentum Signals More Profits for Bitcoin
BTC rose to around $102,000 on Monday following renewed bullish momentum. The move has sparked a wave of renewed optimism among investors about their short-term and long-term potential.
Surge testing, Crypto Titan, market expert, noted that Bitcoin is trying for a significant breakout that could further propel its growth. Specifically, BTC is trying to break out of the Power Law Corridor trend, a bullish pattern that often precedes an uptrend.
According to the analyst, the green line of the Power Law Corridor is tested by BTC, which is currently acting as resistance. In case BTC goes out of line, it can open high power.
Featured image from Unsplash, chart from Tradingview.com