Bitcoins Next Move? Coinbase Premium Suggests a Short-Term Rally May Be Brewing
According to recent insights, Bitcoin (BTC) seems to be on the verge of another rally, which suggests the potential for short-term upward momentum.
At the heart of this discussion is the Coinbase Premium Index, a critical indicator analyzed in one hour by CryptoQuant analyst Yonsei Dent.
This metric and specific moving average trends have highlighted conditions that could pave the way for Bitcoin to regain its upward trajectory.
Upward Move On The Horizon
The Coinbase Premium Index measures the price gap between Bitcoin on Coinbase and other exchanges, offering a glimpse into market sentiment and institutional demand.
Dents analysis zeroes in on the daily (24-hour) and weekly (168-hour) moving averages. Historical data indicates that significant Bitcoin price movements tend to occur when the daily average decisively crosses above the weekly averagea pattern commonly called a golden cross.
According to Dents findings, the weekly moving average has recently transitioned from a negative slope to a positive one, setting the stage for a potential golden cross.
This shift is significant, as previous instances of a positive slope combined with a golden cross have been followed by pronounced price increases.
Additionally, Bitcoin is forming higher lows, a bullish signal, while also shaping a converging triangle pattern. If demand levels rise adequately, these technical patterns could signal the beginning of a renewed uptrend.
While these indicators point to optimism, the CryptoQuant analyst emphasizes the importance of sustained demand.
The analyst mentioned that historical patterns suggest that once this sufficient demand materializes, Bitcoin often experiences strong upward momentum, potentially attracting retail and institutional investors back into the market.
Technical Outlook On Bitcoin
Bitcoin is trading at $96,216, reflecting a 0.3% increase in the past day and a 1.3% rise over the past week.
Amid this price activity, a report from another CryptoQuant analyst Burak Kesmeci, highlights notable behavior among US investors, who seem to be taking advantage of even minor dips in BTCs value.
Kesmeci revealed that within the last 24 hours, Coinbase recorded two significant withdrawal transactions, each exceeding 8,000 BTC, highlighting sustained investor interest in the asset.
Two Significant Outflows Exceeding 8k #BTC Each from Coinbase in the Last 24h
19,487 $BTC were withdrawn, with an average cost of $96,043. The total value of these two transactions amounts to approximately $1.87 billion. By @burak_kesmeci
Link https://t.co/4WkEJ2p3vw pic.twitter.com/ADf1qWvkV2
CryptoQuant.com (@cryptoquant_com) December 3, 2024
The analyst noted:
Since the approval of spot Bitcoin ETFs, institutional demand has significantly increased. With retail investor interest likely to join this trend soon, Bitcoin appears poised to surpass the $100,000 level in the near future.
Featured image created with DALL-E, Chart from TradingView
Source: NewsBTC.com
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Text source: Crypto Breaking News
