Bitcoin, the largest cryptocurrency asset, could be headed for a positive move once again. Recent developments around Coinbase Premium raise the potential for a short term reboundsuggesting a positive outlook for BTC in the coming weeks.
Short-term rally for Bitcoin on the horizon
Coinbase Premium, a key indicator that measures BTC price differences on the Coinbase platform and other cryptocurrency exchanges, shows a possible bullish move for Bitcoin price in the near term. This implies institutional investors in the United States are heavily buying the crypto asset, indicating growing demand and bullish sentiment in the US market, which could cause a short-term rally for BTC as these investors look to capitalize on its growing strength.
Yonsei Dent, a market expert and enthusiast, reported on the development in a recent quick post on the leading on-chain analytics platform, CryptoQuant. The expert predicts that a brief rally may be imminent after analyzing the Coinbase Premium index on the 1-hour period and using the weekly and 24-hour moving averages to identify short-term momentum.
After extensive research, Dent discovered that when the daily moving average decisively exceeded the weekly moving average, significant results in price movement were also observed.
Considering Bitcoin’s past movements, the expert highlighted that there was also a short-term price increase when btc He tried to create a golden cross. This is due to the fact that historically notable price movements have occurred immediately after the 1-day moving average forms a golden cross, which takes place when it strongly crosses the weekly moving average.
Furthermore, the weekly moving average has been momentarily surpassed by the current daily moving average, with the current price positioned at the level $66,400 levelsection where support could be anticipated for the September high, as indicated by the black arrow on the chart.
As a result, Yonsei Dent anticipates that the market will develop a clear upward structure as long as the highs and lows continue, where the lows and highs have progressively increased since August.
A possible price correction for BTC
While Coinbase premium may show an imminent rally in the near term, Kyle Doops, technical analyst and host of the Crypto Banter show, has pointed out a possible price correction for the flagship digital asset in the coming days. Kyle Doops’ pessimistic forecast is based on an analysis of bitcoinThe quarterly performance of By comparing its market capitalization with its realized cap, which revealed crucial patterns for the market.
After examining the metric, the expert warned of possible selling pressures and bearish signals if the market capitalization growth exceeds the made cap. However, a constant limit set during downturns can suggest lows in the market. “With trends echoing 2021, a price correction could be on the horizon,” he added.
Featured image from Unsplash, chart from Tradingview.com
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.