Coinbase Shares the Most Critical Level for the Bitcoin Price

In its latest assessment of the cryptocurrency markets, Coinbase noted that the rise in Bitcoin may be stronger than it appears. The company argued that the rally is supported not only by leveraged trading but also by increasing real demand and shrinking supply dynamics.

According to Coinbase’s analysis, the fact that inflows into spot Bitcoin ETFs, in particular, are approaching their highest levels of the year indicates a resurgence in institutional investor demand. This suggests that the upward movement in the market is based on more solid foundations. At the same time, the continued accumulation of long-term investors is causing the Bitcoin supply to concentrate in “strong hands.”

The report notes that one of the triggers for the recent rise was the liquidation of short positions, recalling that similar “short squeeze” movements have initiated broader bull trends in the past. However, Coinbase stated that sustained increases are generally more sustainable when supported not only by leverage but also by real demand from the spot market.

On the other hand, the analysis pointed out that the approximately $80,000 level is a critical threshold. This level represents the average cost for short-term investors, and a recapture of this level could confirm a stronger trend. Otherwise, a rejection could perpetuate market weakness, the analysis warned.

*This is not investment advice.