Bitcoin Analysis looks at BTC price gains on Coinbase’s premium Golden Cross
According to the analysis, Bitcoin may get relief from the recent decline due to the increasing demand in the United States.
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
Bitcoin (BTC) price action made several tests of the $60,000 support this week amid market turmoil over the situation 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.”
Coinbase Premium Chart (Screenshot). Source: CryptoQuant
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.”
He concluded: “This consistent demand, as reflected by Coinbase Premium, could be a sign of a short-term recovery in the price of Bitcoin.”
Bitcoin enjoys “strong” US demand
As reported by Cointelegraph, Coinbase has seen a positive premium on Binance returns in recent weeks, an encouraging sign for BTC 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.”
Coinbase Flow Pulse. Source: Axel Adler Jr./X
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research before making a decision.
