Bitcoin Delta Cap And Coinbase Premium Gap Signal Resilient Market Structure - Details

Bitcoin’s (BTC) recent volatility has unsettled investors, as the largest cryptocurrency by market cap slid by more than five percent over the last two weeks. However, two key on-chain factors indicate that the BTC market structure is largely resilient.Bitcoin Remains Strong Despite VolatilityAccording to a CryptoQuant Quicktake post by contributor XWIN Research Japan, two important on-chain indicators suggest that despite the recent slump in price, the overall market structure remains strong for the flagship cryptocurrency.The first is Bitcoin’s Delta Cap – a long-term valuation model derived from the difference between Realized Cap and Average Cap – that has historically acted as a reliable floor during major cycles.In early August, BTC traded above this steadily rising line, suggesting that the market is building a stronger foundation compared to previous drawdowns. A rising Delta Cap also signals capital inflows and long-term investor conviction, even during price corrections.The CryptoQuant analyst shared the following chart showing Delta Cap hovering around $739.4 billion. Although BTC is currently trading below this line, a quick move to $120,000 would likely push the price back above it.The second on-chain factor pointing toward resilience in BTC market structure is the Coinbase Premium Gap, which currently stands at +11.6. The high positive value of the metric suggests stronger demand from US institutions, who are accumulating BTC at a premium.For the uninitiated, the Coinbase Premium Gap measures the price difference of Bitcoin between US exchange Coinbase and global exchanges like Binance. A positive gap means Bitcoin trades at a higher price on Coinbase, often signaling stronger US institutional buying demand.Historically, sustained periods of positive premium have preceded major bullish phases, as institutional accumulation drives price discovery. The analyst concluded:Together, these two metrics point toward a constructive setup: Bitcoin consolidating above $100K with strong institutional support and a long-term valuation floor steadily rising. Corrections, rather than being a sign of weakness, appear to be opportunities for accumulation within a robust structural uptrend.Is BTC Out Of The Woods?Although the two aforementioned on-chain indicators point toward strength in BTC market structure, not all analysts are as optimistic. For instance, a fall below $105,000 might send BTC all the way down to $90,000.Another analyst recently warned that if BTC loses the support at $108,600 level, then it could fall further to $104,000. A failure to bounce from $104,000 could see BTC test the psychologically important $100,000 level.That said, Bitcoin’s rapidly rising illiquid supply on Binance may play a pivotal role in sending it to a fresh all-time high (ATH). At press time, BTC trades at $109,289, up 0.9% in the past 24 hours.Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC