On Wednesday, the major cryptocurrency BTC broke through the psychologically important $111,000 price level for the first time. This triggered a surge in demand for the coin in the form of spot market and related investment products among US Bitcoin traders.
Due to the strong upward trend, Bitcoin is prepared to resume its short-term upward momentum and reach a new price peak.
Bitcoin Reignites US Interest
According to the crypto on-chain platform CryptoQuant, with BTC's price surging yesterday, the Coinbase Premium Index (CPI) also jumped to its highest level in 24 days. This reflects increased coin demand among US traders.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
BTC's CPI measures the price difference of the coin on Coinbase and Binance. A value above 0 indicates active buying activity by US investors on Coinbase.
Conversely, if the value drops to a negative number, it indicates reduced trading activity on US-based exchanges.
BTC's CPI reaching its highest level in 24 days reflects the strengthening market momentum. This suggests that traders are willing to pay a premium to purchase BTC on Coinbase. In the short term, this surge in demand could help increase the coin's value.
In addition to this upward momentum, BTC spot ETFs recorded inflows of $609 million yesterday. This is an 85% increase from the $329 million recorded on Tuesday and marks six consecutive days of net inflows.
This trend suggests a surge in interest in BTC among US retail and institutional investors. This demonstrates increasing demand across the spot market and regulated investment instruments.
BTC Approaches All-Time High Amid Strong Buying Pressure
At the time of reporting, BTC was trading at $111,139. This is a 1% drop from the new all-time high of $111,888, but upward pressure continues to persist.
From a technical perspective, BTC's daily Chaikin Money Flow (CMF) remains in the positive zone. This indicates continued buying pressure. At the time of reporting, this indicator is positioned at 0.30.
If momentum is maintained, the coin may soon revisit and exceed its newly set price record.
Conversely, if selling pressure intensifies, BTC's value could drop to $103,882.
