According to the analysis, Bitcoin may be able to bounce back from the recent recession as demand in the US remains high.
In one of its Quicktake blog posts on October 3, on-chain analytics platform CryptoQuant revealed “the potential for near-term BTC growth.”
Golden Cross Strengthens “Short-Term” BTC Price Recovery Bets
Bitcoin (BTC) price action has provided several tests of $60,000 support this week amid market uncertainty over developments in the Middle East.
But demand is strong behind it all, as evidenced by the popular Coinbase Premium indicator.
Coinbase Premium measures the price difference between the BTC/USD pair on Coinbase, the largest US exchange, and the BTC/USDT equivalent on Binance.
As CryptoQuant contributor Yonsei_dent shows, moving averages encompassing premium sizes are correlated with specific BTC price action.
“We analyzed the Coinbase Premium Index on an hourly basis to observe short-term momentum, utilizing 24-hour (daily) and 168-hour (weekly) moving averages for additional context,” he explained.
“Historically, when the daily moving average crosses the weekly moving average with strong momentum to form a golden cross, we have observed significant price movement immediately thereafter.”
Coinbase Premium Chart (Screenshot) Source: CryptoQuant
This “golden cross” scenario last occurred late last month, sending Bitcoin above $66,000.
“Despite the price correction from $66,000 to around $61,000 around October 1, the continued increase in demand from US-based investors suggests renewed upward pressure,” Yonsei_dent added.
He concluded, “This consistent demand, reflected in the Coinbase premium, could indicate the potential for a near-term recovery in the Bitcoin price.”
Bitcoin enjoys “strong” US demand.
As Cointelegraph reported, Coinbase has seen a positive premium over Binance yields in recent weeks, which is an encouraging sign for BTC price performance.
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Overall, exchanges continue to see large withdrawals as BTC/USD tests support, with these numbers reaching their highest since the FTX collapse in November 2022.
Fellow CryptoQuant contributor Axel Adler Jr. reached a similar conclusion about the price outlook by analyzing the Coinbase Flow Pulse tool, which measures movements from other trading platforms to Coinbase.
“Bitcoin inflows to Coinbase from all exchanges remain in the green zone, indicating strong demand for the coin in the U.S. market,” he told his
“Despite local declines, the bullish trend continues.”
Coinbase Flow Pulse. Source: Axel Adler Jr./X
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research before making any decisions.