Why BTC price is primed for another leg up

Bitcoin (BTC) price surpassed $ 50,000 for the first time in history across major futures exchanges, including Binance Futures.

However, on spot exchanges, such as Coinbase and Binance, Bitcoin was rejected for under $ 50,000.

1-hour BTC / USD candle chart (Binance Futures). Source: Tradingview

Why is likely more upside

On February 16, Bitcoin reached $ 49,556 on Coinbase, marking its second attempt to break through its $ 50,000 resistance zone.

Shortly after hitting $ 49,556, BTC saw a sharp decline, dropping around 3.5% within several hours.

CryptoQuant CEO Ki Young Ju explained that Bitcoin’s struggle to cross $ 50,000 relates to “Coinbase (USD) whales versus Stablecoin (USDT) whales”.

Premium Coinbase Index. Source: CryptoQuant

Ki confirmed that there was a negative Coinbase bonus at the time Bitcoin turned down $ 50,000 in the morning. For BTC to be able to outpace it clearly, he made it clear that the negative premium had to be “cooled”.

Since the initial rejection, Coinbase’s premium has stabilized, reaching parity with Binance’s Tether price.

Coinbase usually had a higher bitcoin price than Tether on most days, but the premium recovered from negative to neutral.

The US session may produce new momentum

With the Coinbase premium recovered, Lex Moskovski, a quantitative trader and cryptocurrency investor, said the US session could spur a new Bitcoin rally.

In theory, Coinbase’s premium should return during the US session, as US buyers will be most active during market hours.

Hence, if the premium returns with the opening of the US market, the likelihood that Bitcoin will continue to rise will increase. Moskovsky She said:

“That’s up to $ 50,000 that remains governed by the pressure of buying from Binance and others rather than Coinbase. This is indicated by the lower Coinbase premiums. However, this could also mean that Coinbase buyers join the race when the US wakes up. Let’s see.”

Moreover, the popular cryptocurrency trader Mac said that Bitcoin is likely to exceed $ 50,000 and build a new support zone.

The trader said the likely scenario is for BTC to rise above $ 50,000, correct to around $ 42,000, and create a new support level. he is She said:

“A new rule is about to be built on $ BTC. This is the ideal scenario in my books. With the current market situation, we might press $ 52K and continue consolidating and going up.”

Potential Bitcoin Scenario. Source: TwitterMacnbtc

Overall, both traders and analysts in the chain seem to expect the Bitcoin price to exceed $ 50,000 in the near term.

However, as the rate of funding indicates a crowded futures market, traders are expecting a Bitcoin correction soon after hitting $ 52,000.

If this scenario were to be implemented, it would be much closer to BTC’s reaction at $ 42,000 when it broke above it for the first time. This followed a sharp correction to around $ 29,000 before the price bounced back to new highs.