Bitcoin price movement continues to attract attention as recent trends in the Coinbase Premium Index point to potential short-term bullish momentum. Specifically, the Coinbase Premium Index has broken above its 168-hour moving average, with the 24-hour average approaching a golden cross, a strong indicator of upward price movement.
The Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, shows the 24-hour moving average is closing in on a golden cross. Historically, these patterns have preceded short-term Bitcoin price increases, raising hopes for possible gains in the coming days.
Premium Gap Drop Raises Caution
However, the recent drop in the Coinbase Premium Gap, now in negative territory, shows decreased demand on Coinbase. This could signal short-term caution among investors, possibly due to macroeconomic and regulatory factors as Bitcoin approaches $61,000.
Additionally, large withdrawals from exchanges continue, hitting levels seen after the FTX collapse in 2022. This suggests that investors may be moving their Bitcoin to long-term storage as BTC tests support around $61,000.
Analysts Point to Strong U.S. Demand
Despite the mixed signals from the Coinbase Premium Gap, some analysts remain positive on Bitcoin’s short-term outlook. Crypto analyst Axel pointed out that Bitcoin inflows to Coinbase from other exchanges remain positive.
The Bitcoin inflow to CoinBase from all exchanges remains in the green zone, indicating strong demand for coins in the US market.
Despite the local pullback, the bullish trend persists. pic.twitter.com/T0otiBIQ2m
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 4, 2024
Axel’s data includes a Coinbase Flow Pulse indicator, which tracks net inflows and outflows of Bitcoin from Coinbase. He noted that Bitcoin has entered a recovery stage after a long bearish market, with demand increasing as the market moves into a bullish zone.
Source: AxelAdlerJr
Bitcoin’s price has been showing endurance amid recent fluctuations. Currently priced at $61,313.70, Bitcoin has recorded an increase of 0.93% over the last 24 hours, with a trading volume of $32.6 billion.
Source: CoinMarketCap
Bitcoin began the day around $60,680, experiencing a downturn, touching a low of $60,250 before starting its recovery. After holding within the $60,750 to $61,000 range, Bitcoin recovered and crossed the $61,000 mark, reaching near $61,500 before settling.
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