Bitcoin’s recent price swings are gradually raising bearish sentiment around its price trajectory among crypto enthusiasts and investors. However, considering positive developments around Coinbase Premium, the crypto asset could be gearing up for a potential leg up in the short term, triggering hope within the community.
Coinbase Premium Indicates A Short-Term Rally For Bitcoin
In light of waning market conditions, Coinbase Premium, a key indicator of investor sentiment is currently demonstrating positive trends, fueling the potential for a rally in the short term for Bitcoin, according to data from on-chain analytic platform, CryptoQuant.
The Coinbase Premium measures BTC’s price differences on the Coinbase platform and other cryptocurrency exchanges. When there is a positive reading, this usually shows that institutional investors in the United States are exerting significant buying pressure on the digital asset.
In the quicktake post, the expert recognized as Yonsei Dent claims a rally could be on the horizon for Bitcoin following an analysis of the Coinbase Premium Index on the 1-hour time frame in order to observe short-term momentum by employing the 24-hour and weekly moving averages.
Utilizing this indication in tandem with historical BTC price movements, Dent highlighted that when a golden cross forms, the crypto asset frequently sees brief price upswings. This is because, historically, there have been notable price swings right after the moving average on the 1-day time frame makes a golden cross by decisively crossing over the weekly moving average.
Meanwhile, the index currently has broken over the weekly moving average momentarily once again, and the difference between the weekly and daily average is closing up consistently, hinting at a possible price spike in the near future.
He further underlined a renewed upward pressure as a reason for a persistent rise in demand among US investors in spite of the price correction witnessed on Tuesday, in which BTC fell from about $66,000 to the $61,000 threshold. According to the expert, this steady increase in demand may signal that the price of Bitcoin might be poised for a rebound in the short term.
A Price Dip To Take Place Before The Rally?
Even though BTC is set for a rally shortly, there is a potential that the crypto asset could experience a dip before surging once again. Market expert and enthusiast, Crypto Bullet in a recent post on X (formerly Twitter) has warned of a price decline to the $57,000 level.
Crypto Bullet noted that during the time of the post, Bitcoin was trading at the price range between $59,000 and $60,000, which he underlined about 5 days ago when BTC was valued at $65,000. Thus he believes the price could drop a little lower to $57,000, hopefully after a brief uptick. “We need to take out that Sept 16th low at $57,500 and I believe that $57,000 dip will be the ultimate low for the month,” he added.
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/bitcoin-short-term-price-rally-likely/