|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Bitcoin (BTC) Shows Signs of Resilience Amid Market Fluctuations, Coinbase Premium and "Golden Cross" Indicator Offer Hope for Short-Term Recovery
Oct 06, 2024 at 09:03 am
Bitcoin (BTC) is showing signs of resilience in the face of recent market fluctuations, with the price hovering around $61,361.60. According to recent analysis, the combination of robust demand in the United States and a technical indicator known as the “golden cross” may provide the support needed for a short-term recovery.
Bitcoin (BTC) price seems to be finding support amid the recent market downturn, with the world’s largest cryptocurrency circling the $61,361.60 (€53,632.08) mark on October 3. This comes as strong demand from the United States, coupled with a technical indicator known as the “golden cross,” might be setting the stage for a short-term recovery, according to recent analysis.
Strong US Demand Fuels Optimism
On October 3, on-chain analytics platform CryptoQuant highlighted the potential for a BTC price increase, mainly driven by strong demand from US investors. This optimism comes at a time when Bitcoin has faced several tests of its $60,000 support amid geopolitical concerns, especially regarding the situation in the Middle East.
One of the key metrics pointing to this strong demand is the Coinbase premium. This premium reflects the price difference between Bitcoin traded on Coinbase, one of the largest cryptocurrency exchanges in the U.S., and the BTC/USDT pair on Binance, another major exchange. A higher Coinbase premium typically indicates stronger demand in the U.S. market.
CryptoQuant contributor Yonsei Dent elaborated on the significance of the Coinbase premium, noting that it has historically correlated with BTC price behavior. In particular, the recent formation of a “golden cross”—a bullish signal that occurs when a shorter-term moving average crosses above a longer-term moving average—could be pivotal.
“We analyzed the Coinbase Premium Index on a 1-hour time frame to observe short-term momentum, utilizing the 24-hour (daily) and 168-hour (weekly) moving averages for added context,” Yonsei Dent explained. “Historically, when the daily moving average forms a golden cross with strong momentum, we have seen significant price movements shortly after that.”
The last time this golden cross occurred was at the end of September, which coincided with Bitcoin’s rise above $66,000. Even with the subsequent price correction to around $61,000, the ongoing demand from U.S. investors suggests renewed upward pressure, according to the analysis.
Market Sentiment and Future Outlook
Coinbase’s recent performance shows a positive premium over Binance, which is generally an encouraging sign for Bitcoin’s price performance. The exchanges have witnessed considerable withdrawals as Bitcoin tests its support levels, marking the highest withdrawal rates since the fallout from the FTX collapse in November 2022.
CryptoQuant’s Coinbase Flow Pulse, which measures Bitcoin inflows from other exchanges to Coinbase, further supports this positive outlook. Fellow contributor Axel Adler Jr. noted, “The Bitcoin inflow to Coinbase from all exchanges remains in the green zone, indicating strong demand for coins in the U.S. market.” Despite the recent local pullback, he highlighted that the bullish trend is still in place.
A word of caution: While the current indicators suggest potential for a short-term recovery, market participants are advised to proceed with caution. Bitcoin’s price action is still subject to external factors, such as broader economic conditions and regulatory developments. The cryptocurrency market is known for its volatility, and while positive signals like the Coinbase premium and the golden cross are encouraging, they should be viewed in the context of the broader market narrative and price movements.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Bitcoin MVRV, CQ Bull & Bear Indicators Show Market Uneasiness
- Oct 06, 2024 at 04:15 pm
- An analyst with username burakkesmeci shares that the Bitcoin market is currently set for key price movements. Based on the MVRV Ratio and CQ Bull & Bear metric, burakkesmeci notes that Bitcoin investors are presently showing a significant level of market anticipation.