Since Bitcoin’s price began falling after recently rising to a recent record high on December 17, several key indicators point to a bearish move, creating uncertainty about BTC prospects in the compact term. A sustained decline in key indicators could lead to a greater decline in the BTC price to previous support levels.

Coinbase Premium Tips on Decreased Bitcoin Demand

The continued decline in Bitcoin prices has been followed by a sustained downward trajectory for the Coinbase Premium Index BTC. Technical analyst and host of Crypto Banter Kyle Doops reported negative developments on the X platform (formerly Twitter), reflecting reduced purchasing appetite from investors on the US cryptocurrency exchange.

This indicator that calculates how much Bitcoin costs on Coinbase compared to other international exchanges, is often used to gauge institutional interest. The steady downward trend appears as market optimism wanes and indicates a possible change in investor behavior due to price fluctuations.

According to the expert, Coinbase Premium Bitcoin Index it increased sharply during Donald Trump’s victory in the US presidential elections that took place in early November. Kyle Doops highlighted that this escalate helped keep the BTC price above the $100,000 threshold.

However, as of December 7, this key indicator has been failing with the recent decline in the value of the digital asset below the $94,000 level. Other factors appear to be weighing on the market, such as the holiday slowdown and liquidity issues, which could lead to a prolonged decline BTC price in the compact term.

While these conditions signal a bearish outlook, Kyle Doops remains confident in Bitcoin’s broader outlook, stating, “It’s not over yet.” For now, cryptocurrency enthusiasts are closely watching this trend for signs of a broader impact on price movement in the coming weeks.

This development coincides with a period in which Bitcoin has witnessed: significant inflow to cryptocurrency exchangessignaling increasing market activity and investor engagement. In particular, the immense movement of BTC to cryptocurrency exchanges implies a potential selling strategy for investors, causing a negative outlook for the digital asset.

A significant inflow may be crucial to the development of BTC price dynamics in the compact term. With the decline in prices coinciding with the influx of currency, speculation and uncertainty about the subject has increased within the community Another BTC price movement.

The value of a BTC portfolio at a loss plummets

Bitcoin may have experienced significant volatility, but Kyle Doops did identified a decrease in BTC reported at a loss, reflecting growing market sentiment. Kyle Doops reported that the amount of bitcoin held at a loss has dropped to around 3 million BTC, down from 3.9 million to 6.1 million during last year’s corrections.

Thanks to this, investors show resilience and the pressure on the market becomes less. Considering the development, the market expert suggests a stronger and healthier prospects for the flagship asset.

Featured image from Unsplash, chart from Tradingview.com