Bitcoin Soars to $79,000 but Expert Warns Rally May Not Be Robust
Bitcoin's price surge has reached $79,000, marking a 20% increase since Monday. However, some experts are warning that the rally may not be as robust as it seems.
CryptoQuant market commentator Axel Adler Jr. pointed out that two key indicators have yet to confirm the strength of the latest rally. The Coinbase Premium Index, which compares BTC prices on Coinbase with Binance, remained negative throughout the advance. Although it improved from -0.11 to -0.046, indicating stronger U.S. demand, it never crossed into positive territory.
This suggests that American spot investors have participated in the recovery but are not its primary driver. A move above zero in the Coinbase Premium would be a stronger confirmation of the rally's strength.
Furthermore, dollar-denominated open interest increased 11.7% to $25 billion as Bitcoin rallied, while measured in BTC, open interest declined 8.7%, falling from 366,000 BTC to 334,000 BTC. This divergence indicates that traders were closing existing positions rather than aggressively adding fresh leverage.
Adler sees this as constructive for market structure but believes 'price is rising faster than new positions are being built.'