Originally published on: November 28, 2024
Bitcoin has shown signs of a rebound after hitting a local low of $90,742 on November 26, with its price now back up to $95,000. This recovery has not been isolated to Bitcoin alone, as the entire cryptocurrency market has seen a 7.3% increase in total market valuation to $3.32 trillion between November 26 and 28.
Investors are now speculating whether Bitcoin has found support at $90,000, and if it will continue on its path towards $100,000.
One indicator that suggests a potential bottom at $90K is the Coinbase Premium Index, which measures the difference in pricing between the BTC/USD pair on Coinbase and Binance’s BTC/USDT equivalent. The index has bounced back from a low of -0.0387 to the current value of 0.091, indicating increasing demand from US retail investors.
Julio Moreno, head of research at CryptoQuant, noted that Bitcoin’s apparent demand is on the rise within the expansion territory, signaling new investors entering the market. This aligns with the renewed inflows for US-based spot Bitcoin exchange-traded funds, which saw a net inflow of $103 million on November 26.
Institutional investors are also increasing their exposure to digital assets, with Bitcoin investment products receiving inflows of $3.07 billion during the week ending November 22. This renewed appetite from institutions is a positive catalyst for Bitcoin’s price moving forward.
Furthermore, data from CryptoQuant shows that the amount of Bitcoin on exchanges has decreased, suggesting less supply available for potential selling. This trend indicates investors are moving funds elsewhere, such as self-custody wallets.
While this article does not provide investment advice, these indicators point towards a potential bottom at $90K before Bitcoin makes its way towards $100K. Stay informed on the latest cryptocurrency news and trends by subscribing to the Markets Outlook newsletter for critical insights on investment opportunities and trading strategies.