Coinbase: Bitcoin breaks below bullish support level; now is a better time to position for breakouts rather than "catching a falling knife".

According to a recent research report by Coinbase Institutional, as quantitative tightening (QT) comes to an end and the Federal Reserve resumes bond purchases, the pressure to withdraw funds from the market is easing, which is generally beneficial to risk assets, including crypto assets.

The institution cited multiple reasons for the recent sharp pullback in BTC: Bitcoin broke through a key bull market support level; options traders' sentiment turned bearish; early whales continued to sell; there was a significant net outflow from the spot Bitcoin ETF; and the flow of funds in the Digital Asset Treasury (DAT) slowed down.

Coinbase Institutional stated that, under the current market structure, a more probable strategy is to favor "breakout trades" rather than trying to "catch a falling knife" during a downtrend.