Coinbase Institutional: BTC breaks below the bull market support zone, current breakout trading opportunities outweigh catching falling knives

Coinbase Institutional stated that with the end of quantitative tightening (QT) and the Federal Reserve re-entering the bond market, the pressure of funds being withdrawn from the market may have passed. This is usually positive for risk assets such as cryptocurrencies.

Regarding why Bitcoin has plummeted, the institution provided the following insights: BTC has broken below the main support zone of the bull market; options traders have significantly shifted to a bearish stance; early whales (OG whales) have been selling off; there has been a large outflow of funds from spot Bitcoin ETFs; and DAT has hit the brakes.

In the current environment, the institution believes that high-probability opportunities are more inclined towards breakout trades rather than knife-catching.