Bitcoin Rebound Falters Amid Structural Weaknesses

Bitcoin's recent price rebound has sparked concerns among analysts that it may be at risk of turning into a 'bull trap'. According to onchain analytics platform CryptoQuant, the market is exposing a critical structural vulnerability as it transitions from a healthy spot-led regime to an overheated rally driven primarily by derivatives.

The Coinbase Premium Index, which measures the difference in price between Coinbase's BTC/USD and Binance's BTC/USDT pairs, has been dipping into negative territory despite BTC/USD hitting six-week highs. This indicates a lack of US spot demand and supports the theory that the rebound may be unsustainable.

Fellow CryptoQuant contributor MAC_D noted that recent on-chain data shows OG investors are distributing their supply while new investors are entering the market, indicating a clear transfer of ownership. However, the core issue remains with open interest, which is showing a divergence between price and open interest, emerging a precarious situation.