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Bitcoin’s ability to hold near 70000 reflects a clear shift in short term market behavior. After weeks of sharp swings and heavy selling, Bitcoin price action has slowed and settled into a narrower band. The key signal behind this pause is the Coinbase Premium Index turning positive for the first time in nearly a month. This index compares Bitcoin prices on Coinbase and Binance and often acts as a proxy for US investor demand. Bitcoin opened the week trading close to 70500, and intraday volatility dropped soon after the US session began. That calm suggests sellers have stepped back, at least for now, while buyers reassess entry points.
What the Coinbase Premium Signal Shows
Bitcoin price stability matters, but the Coinbase Premium turning green adds deeper context. This metric tracks whether Bitcoin trades at a higher price on Coinbase than on offshore exchanges. A positive reading often points to renewed buying from US based institutions and retail traders.
Current signals worth noting include:
• The first positive Coinbase Premium reading since mid January
• Reduced sell pressure during US trading hours
• Spot buying activity returning after a prolonged cooldown
CryptoQuant data supports this view, showing that the green spike appeared over the weekend and held into early trading. Analysts see this as a sign of cautious confidence rather than aggressive speculation. At SquaredTech.co, we view this shift as an early indicator that US demand is testing the waters again rather than rushing back in.
On Chain Accumulation and Trader Behavior
Beyond exchange pricing, on chain data adds another layer to the story. Large holders continue to withdraw Bitcoin from exchanges, which reduces immediate selling supply. CryptoQuant contributor CryptoOnChain described this phase as accumulation during capitulation, where long term players buy while sentiment remains uncertain.
Key on chain observations include:
• Exchange outflows rising sharply over the past two weeks
• Average Bitcoin withdrawn per transaction climbing above recent norms
• Fewer large sell orders appearing during US sessions
Traders such as StefanB describe the current setup as a range bound phase. Bitcoin price now moves between well defined technical levels while liquidity rebuilds. Another trader known as CW noted that buy orders continue to form while downward pressure has faded. These conditions often appear after intense volatility, though they do not guarantee a breakout.
Near Term Outlook for Bitcoin Price
Despite improving signals, caution still dominates professional analysis. Glassnode reports that overall market posture remains defensive, with hedging activity elevated and profit margins compressed. Bitcoin holding near 70000 acts as a psychological and technical support, but a sustained move higher will require stronger spot demand and follow through from institutional buyers.
Near term factors to watch include:
• Whether the Coinbase Premium stays positive across multiple sessions
• Continued reduction in exchange held Bitcoin supply
• A clear increase in spot volume rather than derivatives activity
For now, Bitcoin’s steadiness marks a pause rather than a reversal. At SquaredTech.co, we see this phase as a reset point. If demand builds gradually, Bitcoin price could form a stronger base. If buyers hesitate, the market may remain range bound until a new catalyst appears.
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