Weak market signals guide traders in the right direction to seize opportunities amid volatility

In recent months, the cryptocurrency market has continuously sent complex signals. While some investors have profited from short positions, those betting on a recovery are repeatedly losing capital. This is not coincidental but a clear reflection of the main market indicators—revealing the true picture of current Bitcoin supply and demand.

Coinbase Premium Index: Selling pressure remains strong

According to recent analyses, the Coinbase Premium index has shifted from positive to negative over the past two weeks. Although it was still positive on December 11, it has now fallen into negative territory. What does this mean? It indicates that US retail investors still have a selling mentality at each price increase, rather than holding long-term positions.

Analyst Mv_Crypto clearly pointed out: “Dark red bars are continuously appearing on the chart, indicating that selling pressure in the US has not eased. Every Bitcoin rally is met with strong selling.” This is why opening long positions now requires extreme caution.

Bitcoin ($90.69K) faces demand weakness

Since October, signs of weakness have begun to appear in Bitcoin demand data. The Capriole Investment index recorded an unprecedented low: -3.491 BTC last Monday—the strongest negative level since October 21. Interest in Bitcoin ETFs has also decreased, with continuous net capital outflows. Compared to 2024, the number of new investors clearly fewer.

However, this weakness is not the whole story. As of November 6, the demand index remained positive, indicating a light interest still exists despite the downward market trend.

Opportunity strategy: Follow the market trend

In the current context, smart traders have realized one thing: there’s no need to fight the current trend. Instead, work with the flow.

Market watchers have been able to profit by opening short positions in recent months. Short-term trading with small but stable profit targets has become an effective strategy, especially during a downturn like now.

However, if you still want to seize the opportunity for a rally, wait for convincing signals:

• Coinbase Premium index turns positive again and maintains an upward trend – this will be a sign of changing sentiment
• Clear breakout above the 98,000 USD resistance zone – confirming the strength of the upward trend
• Increased trading volume accompanied by positive news – confirming a trend shift

These factors combined will provide a strong signal to join with high confidence, especially for altcoins that may surge faster. However, remember: predicting the absolute bottom is like a game of luck—no one can do it consistently.