The recent fluctuations in Bitcoin’s price are slowly contributing to a more bearish outlook among crypto enthusiasts and investors. Nonetheless, with the encouraging developments surrounding Coinbase Premium, this crypto asset might be poised for a short-term upward movement, inspiring optimism within the community.
Coinbase Premium Suggests A Short-Term Upsurge For Bitcoin
Despite the deteriorating market conditions, Coinbase Premium, a vital gauge of investor sentiment, is currently showcasing positive trends, indicating the possibility of a Bitcoin rally shortly, as per data from the on-chain analytics platform, CryptoQuant.
The Coinbase Premium tracks the price discrepancies of BTC on the Coinbase platform compared to other cryptocurrency exchanges. A positive reading typically indicates that institutional investors in the United States are exerting significant buying influence on the digital asset.
In a recent quicktake post, the expert known as Yonsei Dent suggests that a rally may be imminent for Bitcoin by analyzing the Coinbase Premium Index on a 1-hour timeframe to capture short-term momentum while utilizing 24-hour and weekly moving averages.
By pairing this indicator with historical BTC price patterns, Dent emphasized that a golden cross often leads to brief price surges for the crypto asset. Historically, notable price movements tend to follow shortly after the 1-day moving average creates a golden cross by decisively surpassing the weekly moving average.
Currently, the index has moved beyond the weekly moving average temporarily, and the gap between the weekly and daily averages is consistently narrowing, suggesting a possible price surge in the near future.
He further emphasized renewed upward pressure as a factor contributing to a steady increase in demand among US investors despite the price correction seen on Tuesday, when BTC fell from approximately $66,000 to the $61,000 range. According to the expert, this sustained increase in demand may indicate that Bitcoin’s price could be set for a bounce back in the short term.
Could There Be A Price Dip Before The Rally?
While BTC appears to be on the verge of a rally, there is a possibility that the crypto asset may undergo a dip before rising once more. Market expert and enthusiast, Crypto Bullet, recently warned in a post on X (formerly Twitter) about a potential price drop to the $57,000 level.
Crypto Bullet noted that at the time of posting, Bitcoin was trading in the range of $59,000 to $60,000, a level he mentioned about 5 days ago when BTC traded around $65,000. He suggests the price might dip slightly lower to $57,000, potentially after a short upturn. “We need to overcome that September 16th low at $57,500, and I believe that a dip to $57,000 will be the lowest point for the month,” he added.
Featured image from Unsplash, chart from Tradingview.com
