Bitcoin’s price has experienced a decline, dropping to below $87,000 as the Coinbase Premium has hit a one-year low; this reflects weak demand in the U.S. market. The recent analysis suggests that Bitcoin could potentially target a price of $66,000 in the future.
Highlights:
- Bitcoin fell to a five-week low at $86,000 during the weekend.
- The Coinbase Premium Index recently reached a negative value indicating increased selling pressure.
- If the bearish trend continues, Bitcoin’s price target could hit $66,800.
Increased Selling Pressure in the U.S.
The index, which measures the price disparity between Bitcoin on Coinbase and Binance, fell to a negative -0.17, the lowest since December 2024. This indicates ongoing sell pressure, particularly from U.S. investors, who are not aggressively purchasing despite brief periods of recovery.
“The Coinbase Premium continues to drop sharply and widen, indicating significantly stronger BTC selling pressure on Coinbase compared to other exchanges,” stated CoinGlass.
Despite some fluctuations, the index has maintained a negative stance for over five weeks. According to CryptoQuant, the sustained negativity usually denotes capital retreating from U.S. exchanges with minimal buying activity from long-term investors.
“Until the premium stabilizes and turns positive, the upside remains fragile,” warned analyst TeddyVision in an analysis.
Historically, a similar trend observed between December 18, 2024, and January 5, 2025, saw an 18% decrease in Bitcoin prices. Recent outflows from U.S.-based Bitcoin ETFs have consolidated around $1.72 billion over just five days, contributing to an overall bearish sentiment in the cryptocurrency market.
Future Price Movements
Veteran trader Peter Brandt has signaled a “sell” trigger as the BTC/USD pairing displayed a bearish trend.
“The price needs to reclaim $93K to negate this trend,” stated Brandt in his recent post.
The predicted target, estimated by tracking market patterns, suggests a significant decrease to $66,800, which aligns closely with previous price peaks from November 2021 and 2024. Maintaining the support zone between $80,000 and $84,000 is vital for Bitcoin to prevent further declines.
