Bitcoin recently hit $100,000 again, causing a surge of excitement in the crypto world. Several important indicators are also looking good, hinting at a potential price boom.
A Bullish Shift in Bitcoin’s Market
The Coinbase Premium Index (CPI) — which shows the price difference between Bitcoin on Coinbase and other exchanges — is now positive. This is a big deal because it usually means US institutional investors are buying more Bitcoin. This renewed confidence could really push the price up.
It’s worth noting that the CPI was pretty low earlier this year, hitting a 12-month low around -0.237 at the end of 2024. This was partly due to uncertainty around the US elections and increased selling pressure. A low CPI usually isn’t good for Bitcoin’s short-term price.
But now, with the CPI positive and Bitcoin trading above $102,000, things are looking brighter. Data shows the index is around 0.001, and a large Bitcoin outflow from Coinbase further suggests strong buying pressure from US investors. This is especially significant since the approval of Spot Bitcoin ETFs.
Upward Momentum and Breakout Potential
Bitcoin’s recent climb to around $102,000 has investors feeling optimistic. One analyst, Titan of Crypto, points out that Bitcoin is trying to break out of a “Power Law Corridor” trend. If it succeeds, this could lead to some serious gains. The analyst sees the blue line of this corridor as the current resistance level. A successful breakout past this line would be a very bullish sign.
