Coinbase Premium Index diverging from Bitcoin price, signaling potential negative implications

From Investing.com

December 18, 2024 2:30:22 pm:

A notable divergence has formed between the Coinbase Premium Index and Bitcoin’s price, signaling potential negative implications despite the recent price rally. The index reflects U.S. demand for Bitcoin, with a decline posing concerns during a period of increased North American investor interest due to upcoming Bitcoin ETF launches and macroeconomic shifts.

Investors are advised to exercise caution and closely monitor the situation as the Coinbase Premium Index declines while Bitcoin’s price has risen. The divergence could indicate underlying weakness in medium-term upward momentum, potentially impacting the future price trajectory of the cryptocurrency.

As the price of Bitcoin fluctuates and the Coinbase Premium Index declines, investors are keeping a close eye on market developments. The focus is on the weekly candle’s closure at the $105,149 level, with the possibility of a false breakout leading to a potential drop to a new low of $100,000. The market remains hopeful for a major rebound in the near term despite recent fluctuations.

Read more at Investing.com: Coinbase Premium Suggests Caution Amid Bitcoin Sell-off By U.Today