As a seasoned researcher with years of experience in the cryptocurrency market, I’ve seen my fair share of price fluctuations and trends. The recent divergence between Bitcoin‘s price and the Coinbase Premium Index has piqued my interest, to say the least.
Recently, there’s been a significant discrepancy observed between the Coinbase Premium Index and Bitcoin’s market value, according to CryptoQuant. This gap indicates a downward trend, even though Bitcoin’s price has experienced a massive surge recently.
Surging Bitcoin price and declining Coinbase Premium Index
Over the years, short-term price trends have been predicted using momentum analysis with Moving Averages (MAs). However, as the market evolves, other measures are employed.
Over the past fortnight, a significant gap emerged between Bitcoin’s price and the Coinbase Premium Index. This discrepancy occurred as the value of BTC climbed from $94,000 to $108,000, reaching $104,097.77 at the moment, a drop of 2.4% in its price.
The Coinbase Premium Index, in simple terms, measures the interest in Bitcoin among U.S. investors. This index is calculated by observing transactions on prominent American cryptocurrency platforms like Coinbase and Binance. When the premium is high, it indicates a surge in buying activity from U.S. investors.
Although Bitcoin’s price has climbed over the past fortnight, the Coinbase Premium has decreased. If this price increase hasn’t been fueled by demand within the United States, it might suggest potential vulnerability in the long-term upward trend.
— CryptoQuant.com (@cryptoquant_com) December 18, 2024
It’s worrying that Coinbase Premium is decreasing, particularly since North American investment interest remains high during this period. This trend emerges alongside the upcoming launch of Bitcoin ETFs in January 2024 and a changing economic landscape, which seems to be affecting investor sentiment.
Based on data from the blockchain analysis platform CryptoQuant, if the recent price increase isn’t backed by strong demand within the United States, it might suggest a potential vulnerability in the long-term bullish trend.
Given the current situation, it’s recommended that investors stay vigilant and keep a close eye on these ongoing developments.
Bitcoin price could surge — or not
A week back, things were drastically different; according to U.Today’s report, while the value of Bitcoin was falling sharply, the premium on Coinbase increased.
Even though prices have dipped after reaching all-time highs, there remains optimism that a significant recovery will occur soon. In the short term, attention is shifting towards whether the market will close above the $105,149 level in the upcoming weekly candle.
If a false breakout happens, the Bitcoin price risks dropping to a new low of $100,000.
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2024-12-18 19:14