Bitcoin Coinbase Premium Hits 20-Day High as U.S. Demand Builds—Price Eyes $118K Breakout
Bitcoin Premium on Coinbase Surges for 20 Consecutive Days as $118K Target Looms
Bitcoin is flashing bullish signals as the premium on U.S.-based exchange Coinbase continues its upward streak for the 20th consecutive day, even as broader selling pressure lingers in the market.
The Coinbase Premium Index (CPI)—a key metric that tracks the price difference between Bitcoin on Coinbase and global competitors like Binance—has posted its longest positive streak of 2025, underscoring sustained buying from American institutional and retail investors.
Strong U.S. Demand Offsets Broader Market Pressure
As of May 26, Coinbase recorded a net outflow of 8,742 BTC, the third-largest single-day withdrawal over the past month, according to analyst Burak Kesmeci. Such outflows often signal that institutions are accumulating, typically preceding announcements of ETF inflows or corporate acquisitions of Bitcoin.
“Large-scale outflows from Coinbase are often followed by either ETF inflow surges or announcements from corporations like Strategy declaring new BTC purchases,” said Kesmeci.
Bitcoin researcher Axel Adler Jr. also pointed to ongoing profit realization without signs of overheating. The Short-Term Holder Spent Output Profit Ratio (SOPR)—which measures profits from BTC held for under 155 days—has risen locally, but remains well below the levels seen at past market peaks.
This indicates the rally is healthy, driven by real demand rather than speculative mania.
Selling Pressure Drops to Pre-Correction Levels
CryptoQuant data supports these findings. Inflows from long- and short-term holders (LTHs and STHs) to Binance have fallen sharply.
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In August 2024, more than 12,000 BTC flooded Binance.
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In April 2025, during tariff-induced panic, 14,000 BTC were sent to exchanges.
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Currently, only 8,000 BTC have been moved—comparable to minor corrections.
This suggests that downside pressure is easing, increasing the probability of a bullish continuation.
Technical Setup Hints at Breakout Toward $118,000
From a technical standpoint, Bitcoin is forming a descending triangle pattern, typically a precursor to a breakout. The lower bound sits within the $106,000–$104,000 range, where demand appears strongest.
Key bullish signals include:
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A visible bullish divergence between price and the RSI, suggesting weakening downward momentum.
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Potential liquidity sweep below $107,000, possibly followed by a sharp bounce back into the triangle.
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This move could trigger a run toward the $118,000 target, a key resistance level outlined by multiple analysts.
Outlook: A Market Ready for a Measured Climb
The combination of U.S. investor demand, reduced exchange inflows, and technical bullish patterns puts Bitcoin in a position to retest new highs. The absence of speculative excess adds credibility to the ongoing rally.
Still, traders are reminded that volatility persists, and market conditions can shift quickly. As always, individual due diligence remains essential.
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