Bitcoin Surges to $79k, But Can Bulls Trust This Rally?

Bitcoin has surged to over $79,000 this week, marking a 20% increase since Monday.

However, market commentator Axel Adler Jr. from CryptoQuant believes that two key indicators have yet to confirm the strength of this rally.

The Coinbase Premium Index, which compares BTC prices on Coinbase with Binance, remained negative throughout the advance, despite improving from -0.11 to -0.046, signaling stronger U.S. demand.

Adler notes that a move above zero in the Coinbase Premium would be a stronger confirmation of American spot investors participating in the recovery.

Another indicator, dollar-denominated open interest, increased 11.7% to $25 billion as Bitcoin rallied, but measured in BTC, open interest declined 8.7%, falling from 366,000 BTC to 334,000 BTC.

This divergence suggests that traders were closing existing positions rather than aggressively adding fresh leverage, a view shared by Adler who sees it as constructive for market structure.