Coinbase Premium Metric Suggests the Next Major Bitcoin (BTC) Rally is Approaching

Onchain analytics platform CryptoQuant revealed the “possibility of a short-term BTC increase.” The protocol cited past BTC price movements

Coinbase Premium hints at the next major Bitcoin (BTC) rally, according to onchain analytics platform CryptoQuant, presenting the “possibility of a short-term BTC increase.”

The protocol used past BTC price movements and the Golden Cross technical indicator to support its short-term BTC price increase forecast.

Coinbase Premium: Bitcoin Marks Golden Cross At $66,000

In cryptocurrency trading, the golden cross is a technical indicator that shows when the short-term moving average (like the 50-day MA) crosses above the long-term moving average (like the 200-day MA). This formation indicates a potential shift to a bullish market trend. Traders and investors usually use these bullish chart patterns to guard their trades.

It was observed that the price jumps when the golden cross formation appears on the Bitcoin chart. Such a golden cross trend was last seen in September, just before Bitcoin surged above $66,000.

Following the CryptoQuant forecast, market analyst Ali Martinez noticed a spike in the Bitcoin Taker Buy/Sell ratio on OKX. An increase in this metric signals an aggressive buy.

In the end, the surge in traders’ and investors' activity amounts to upward momentum, which entails a price burst. Hence, if demand is sustained, BTC may see relief from its recent downturn. At press time, the BTC price was trading at $61,499.11 after gaining 1.45% in 24 hours. In the past few days, this coin has tested the $60,000 support level several times.

This week, the selloffs intensified because of market jitters over the Middle East tension. However, Coinbase Premium has shown a strong demand for the coin. For context, this metric measures the difference in pricing between the BTC/USD pair on Coinbase and Binance’s BTC/USDT equivalent.

Bitcoin Transfer From Other Exchanges To Coinbase

CryptoQuant's Yonsei_dent said the MAs covering the size of the premium are, in turn, correlated with specific BTC price behavior. He further explained how the Coinbase Premium Index was analyzed in one hour to observe short-term momentum. The 24-hour and 168-hour moving averages were used for added context.

Since September until October 1, Bitcoin has corrected from $66,000 to $61,000. The rise in demand among investors came amidst this correction, and Yonsei_dent is optimistic that a price surge is next. On one hand, exchanges are beginning to experience massive BTC outflows. The volumes have hit their highest level since the FTX implosion in November 2022.

Coinbase, on the other hand, has several shifts from other trading platforms, according to the Coinbase Flow Pulse tool. After analyzing this tool, fellow CryptoQuant contributor Axel Adler Jr. reached similar conclusions on the price outlook.

The Bitcoin inflow to CoinBase from all exchanges remains in the green zone, indicating strong demand for coins in the US market.

Whale Accumulation And Bitcoin ETF Impact

Other factors and events that could influence the BTC price include whale accumulations and the future outlook of the spot Bitcoin ETF ecosystem.

The ETFs have been caught in a negative streak for a few days. At the end of September 30th, the cumulative net inflow of all Bitcoin ETFs crossed $18 billion. This does not account for the lower inflow and volume recorded in the past few weeks.

Should the landscape improve, these offerings may trigger a rally in Bitcoin price. Additionally, if BTC whales accumulate more of the coin instead of selling their holdings, the price could improve in the long run.

The above is the detailed content of Coinbase Premium Metric Suggests the Next Major Bitcoin (BTC) Rally is Approaching. For more information, please follow other related articles on the PHP Chinese website!