Bitcoin Analysis looks at BTC price gains on Coinbase’s premium Golden Cross

Bitcoin (BTC) may get a reprieve from its recent slump as US demand rises, analysis says.

In one of Quicktake's blog posts on October 3, onchain analytics platform CryptoQuant revealed a “short-term BTC increase possibility”.

Golden Cross raises “short-term” BTC price recovery bets

BTC price action has made several tests of the $60,000 support this week amid market jitters over conditions in the Middle East.

Behind the scenes, however, demand is strong – as indicated by the popular Coinbase premium metric.

The Coinbase Premium measures the price difference between the BTC/USD pair on the largest US exchange, Coinbase, and Binance's BTC/USDT.

As shown by CryptoQuant contributor Yonsei_dent, the averages covering the amount of the premium are, in turn, correlated with the price behavior of certain BTC.

“We analyzed the Coinbase Premium Index over a 1-hour period to track short-term momentum using the 24-hour (daily) and 168-hour (weekly) moving averages for additional context,” he explained.

“Historically, when the daily moving average crosses the golden cross at a strong rate above the weekly moving average, we have observed significant price movements shortly thereafter.”

Such a “golden cross” scenario occurred late last month, which captured Bitcoin's move above $66,000.

Yonsei_dent added, “Despite a price correction from around $66K to $61K around October 1st, increasing interest from US-based investors suggests further upward pressure.”

“This consistent demand, as reflected in the Coinbase Premium, may indicate a short-term recovery in Bitcoin's price,” he concluded.

Bitcoin enjoys “strong” US demand

As Cointelegraph reports, Coinbase has seen a positive premium on Binance returns in recent weeks, which itself is an encouraging sign for BTC's price performance.

Related: Bitcoin retail is back on the cards as Coinbase hits top-400 apps

Overall, exchanges continued to witness massive breakouts as BTC/USD tested support, rising to the highest since the FTX meltdown in November 2022.

Analyzing the Coinbase Flow Pulse tool that migrates from other trading platforms to Coinbase, fellow CryptoQuant contributor Axel Adler Jr. A similar conclusion was reached in the price perspective.

“Bitcoin flow from all exchanges to CoinBase remains in the green zone, which shows the high demand for coins in the US market,” he told X followers with the chart on October 4.

“While the environment is rebounding, the bullish trend continues.”

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.