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A surge in investment interest is propelling Bitcoin’s Coinbase premium streak, signaling robust market confidence as technical indicators predict a potential rally.
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With falling inflows from both long-term and short-term holders, downside risks appear mitigated, paving the way for future gains in Bitcoin’s value.
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According to crypto analyst Burak Kesmeci, substantial net outflows from Coinbase often foreshadow significant corporate BTC purchases or ETF inflow announcements.
Strengthening demand from US investors boosts Bitcoin’s Coinbase premium, with projections hinting at a rally towards $118,000 amidst reduced selling pressure.
Market Confidence Fuels Bitcoin Rally as Coinbase Premium Streak Continues
The ongoing trend in Bitcoin’s Coinbase Premium heralds a wave of strong institutional and retail interest. For the past 20 days, this premium—a measure of Bitcoin’s price on Coinbase compared to other exchanges—has consistently remained positive, marking the longest such duration in 2025.
This sustained premium reflects a rising confidence in the market, bringing buoyancy to Bitcoin as both retail and institutional investors appear eager to accumulate. As outlined by crypto analysts, including Burak Kesmeci, the implications of this trend signal robust market conditions that may lead to a further price surge.
Decreasing BTC Inflows Mitigate Downside Risk
Recent analyses reveal that Bitcoin’s fundamentals remain strong as inflows from short and long-term holders have dwindled. The decrease in inflows is a crucial indicator, suggesting that the current price levels lack significant selling pressure.
Notably, Kesmeci reports a net outflow of 8,742 BTC from Coinbase on May 26, implying strong demand. As he asserts, “Large-scale outflows from Coinbase are often followed by either ETF inflow surges or announcements from corporations declaring new BTC purchases.” This trend underscores an opportunity for investors considering Bitcoin’s long-term prospects as they position themselves for potential gains.
Technical Analysis Indicates Bullish Momentum
From a technical standpoint, Bitcoin’s price action appears to be forming a descending triangle pattern, which often signals potential breakouts. The current analysis suggests that a breakout could target a price range of $118,000.
On the 1-hour chart, Bitcoin demonstrates resistance that is compressing price action. At the same time, a strong support level has been established between $106,000 and $104,000, identified as a critical zone for attracting buyers.
Visible Bullish Divergence Enhances Breakout Prospects
Furthermore, a bullish divergence noted between Bitcoin’s price and the relative strength index (RSI) adds further credence to the bullish narrative. While Bitcoin has recorded lower lows in pricing, the RSI indicates an upward trend, revealing a weakening bearish momentum that could lead to a potential reversal.
The chart indicates a possible temporary deviation below the trendline at $107,000, suggesting a liquidity sweep may occur. If Bitcoin dips into the $106,000 to $104,000 range before rebounding, it could affirm the bullish divergence and catalyze a breakout toward the projected target of $118,000.
Conclusion
In summary, Bitcoin’s current market dynamics reflect increasing investment interest, resulting in a positive Coinbase premium streak. With reduced selling pressures from holders and technical indicators suggesting a rally could soon unfold, investors may find a compelling case to engage in the market. Strong fundamentals and bullish technical patterns indicate that Bitcoin could realign with significant price targets in the near future, reaffirming its resilience in the evolving digital asset landscape.
