As a seasoned researcher with extensive experience in the crypto market, I find myself drawn to the insights shared by the CryptoQuant community expert, Avocado Onchain. The convergence pattern observed in the Coinbase Premium chart is reminiscent of a “bullish flag” that we saw during the 2021-2022 bull run, preceding Bitcoin’s surge to its all-time high.
An analyst from CryptoQuant platform shared insight on how shrinking Coinbase Premium could potentially signal good news for Bitcoin (BTC) over the long term. Earlier, this measure had been beneficial in estimating the time required for Bitcoin to reach a fresh record high.
In 2021, it sent BTC price to ATH: What Coinbase Premium dynamics tell us
Examining the one-hour chart for Coinbase Premium, analysts have observed a “narrowing triangle,” as both the upper and lower lines are approaching each other, moving closer to zero. This pattern resembles a “bullish flag” in trading, and it has been pointed out by the anonymous crypto expert known as Avocado Onchain, who is a verified analyst within the CryptoQuant community.
During the 2021-2022 bull market, we noticed that the Coinbase Premium displayed a similar triangular pattern during a prolonged consolidation period. Following this, Bitcoin’s price experienced a substantial increase, hitting a brand-new record high, as pointed out by @avocado_onchain.
— CryptoQuant.com (@cryptoquant_com) September 13, 2024
According to the expert, it’s worth noting that the “triangle” pattern appeared before Bitcoin (BTC) hit its record high during the last bull market.
During the 2021-2022 bull market, we noticed a similar triangle-like convergence in the Coinbase Premium during a prolonged period of consolidation. Later on, Bitcoin’s value experienced a substantial increase, setting a new record high. I am of the opinion that the current triangular shape in the Coinbase Premium indicates a stalemate among big investors (whales), as they carefully assess one another’s actions prior to the next significant price movement.
As a researcher, I focus on analyzing the Coinbase Bitcoin Premium Index, which represents the percentage variation between the Coinbase Pro trading price for Bitcoin (BTC) against the U.S. Dollar (BTC/USD pair) and the Binance trading price for Bitcoin (BTC) against Tether (BTC/USDT pair). This index serves as a valuable indicator, providing insights into the level of American investor activity and their interest in acquiring Bitcoin at present market prices.
Reducing Coinbase’s premium suggests that the market has reached a balance between buyers and sellers, often signaling an upcoming surge in market volatility.
Bitcoin (BTC) volatility decreasing amid market apathy
Previously reported by U.Today, the premium for Bitcoin (BTC) on Coinbase plummeted to below -0.3 in Q2, 2024, dipping twice. This suggests a strong sense of pessimism among American investors regarding the cryptocurrency’s value.
Currently, the fluctuations in the value of Bitcoin (BTC) are becoming less extreme. According to data from TradingView, over a span of three days, the 24-hour volatility of Bitcoin has decreased significantly, going from 3.05% down to 2.3%.
In simpler terms, the most significant digital currency, Bitcoin (BTC), is currently valued at approximately $57,758. Over the past day, it has seen a minor increase of 0.1%. Interestingly, the amount of Bitcoin being traded has decreased by 15% during the nighttime hours.
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2024-09-13 18:02