Bitcoin Market Awaits Breakout as Coinbase Premium Index Signals Bullish Sentiment

Bitcoin has recovered from the previous week’s dip, however, the much-expected breakout of the price action is still awaited. A market breakout has been indicated by the Coinbase premium index. A clear breakout is visible on the Coinbase premium index chart. This is a prominent measure of checking market sentiment and activity by investors. Nevertheless, Bitcoin futures’ open interest, which has averaged 10% of the prior level, continues to support the price level.

Bitcoin Market Dynamics

“The price action market breakout is yet to come, but Coinbase premium index has made a market breakout.” – By TraderOasis

Read more 👇https://t.co/f9PktJBhoc

— CryptoQuant.com (@cryptoquant_com) May 6, 2024

Low Funding Rates and Projected Gap Point to Bullish Sentiment for Bitcoin

Funding rates, the cost of holding a position on the future’s platform, are showing low numbers which is a positive thing for the price. This fact illustrates that there are almost equal short and long positions.

Additionally, one of the evidences that backs the given analysis is a projected daily gap for

to go up. A gap refers to a situation when an asset’s open price the following day is higher than the corresponding close price of the previous day. Generally, such a trend demonstrates a bullish nature of sentiment among market participants.

Investors Await Breakout Amidst Stable Bitcoin Price Action

At the time of writing, the price of Bitcoin is $63,850 in the last update. The downbeat price action signifies that the market is somewhat stable at the point, while investors also wait for the two breakouts.

Ultimately, the price action of the market is in anticipation of a Bitcoin breakout which is due because the Coinbase premium index, open interest and daily gap is up. Therefore, investors keep a close eye on updating trades in line with behaving properly in the market ecosystem.

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