A noteworthy signal regarding BTC's spot premium emerged over the weekend:

During the price drop from 106k to 103k, the spot premium showed a continuous increase, indicating sustained spot demand entering the market along with a significant number of futures shorts opening positions, and perhaps accompanied by futures longs closing positions;

This situation represents a standard divergence between spot and futures, thus highlighting the short-term risk of going short!

Since the left-side range has indeed been breached, from a trend structure perspective, it should be bearish, but the internal liquidity of the market is attempting to negate this structural breakdown, causing both price and premium to rise simultaneously;

Therefore, for bulls, it may be wise to wait and not go long, but for bears, caution is needed as they could get pulled back to a stop-loss at 106.6k after going short...