The BTC price has held above $32,000 for most of the weekend, but it has struggled to surmount the $34K resistance and get back in a positive zone. Over the past week, the king coin plunged as low as $28,865 as bears took over its price action before correcting higher above the $30K support.
At the time of writing, BTCUSD is down 1% at its price of $31,871 as the pair continues its consolidation phase. The bulls must now break above the $33,500 and $34,000 resistance levels to avert a slip back into the $30,000 region.
BTCUSD Chart By TradingView
One Analyst Is Short Term Bearish on Bitcoin
Even as BTC shows signs of recovery this weekend, Ki Young Ju, the CEO at CryptoQuant, forecasts that the coin is neutral to short-term bearish for now. He pointed to the Coinbase Premium Index, a key indicator that crypto analysts depend on to measure a cryptocurrency rally’s strength.
As shown in the chart below, the metric dipped into negative territory on Jan 24, indicating a lack of capital inflows into BTC from high-net investors.
The BTC Coinbase Premium Index (blue) Turns Negative | Source CryptoQuant
“I’ll keep my bearish bias until there are significant Coinbase premium and Coinbase outflow. $BTC needs USD spot inflows from institutional investors to start the next bull run,” the analyst commented.
Ki added that investors should watch stablecoin inflows into exchanges, as they can offer a powerful on-chain signal for the next short term surge regardless of overall market trends.
According to the CEO, a spike in stablecoin inflows often points to the entry of sidelined capital into the crypto space. For instance, the last surge in stablecoin inflows to exchanges on Jan 22 led to BTC gaining 6% over the next 24 hour period.
ETH Bulls Reclaim $1,300
Ether is back trading in the green after gaining bullish momentum above the $1,250 resistance. The top altcoin built on yesterday’s strong close above $1,200 to start a fresh increase against the US Dollar.
ETHUSD is now trading well above $1,300 at its current price of $1,335. The pair is looking primed to climb even higher and retest the 1,400 level, but it is likely to face hurdles near $1,380.
ETHUSD Chart By TradingView