The Coinbase Premium Index suggests a potential short-term increase in Bitcoin’s price. Recent analysis of the index, using 1-hour time frames and incorporating daily and weekly moving averages, reveals significant momentum. According to CryptoQuant, when the daily moving average crosses above the weekly moving average with strong momentum, Bitcoin’s price often experiences notable movements in the near term.
Bitcoin Price Likely to Rise with Coinbase Premium Amid Continued Investor Demand
Based on the Coinbase Premium Index, Bitcoin’s price may be on the rise in the short term. The daily moving average has recently crossed above the weekly moving average. The pattern commonly leads to temporary price increases.
The Coinbase Premium Index is currently up above its weekly moving average. A key indicator of potential short term price movement is this gap between the daily and weekly averages that is narrowing. Historically, Bitcoin’s price has increased in the short term when the daily moving average crosses over the weekly moving average. In past price movements, we can see this trend in the shaded gray regions.
For instance, even after a recent correction from $66,000 to about $61,000 in the early October, U.S. investors still demand Bitcoin. The Coinbase Premium Index reflects continued demand, and suggests that the upward pressure could be building. The demand keeps coming in as U.S. investors keep buying, which could bring a return to Bitcoin’s price.
Bitcoin Price Expected to Rise as Demand and Momentum Grow
The trend in demand is consistent and the gap between the moving averages is narrowing, indicating a short-term recovery for Bitcoin, as per CryptoQuant data. Over the years, the Coinbase Premium Index has been an important price momentum indicator. The current data indicates that Bitcoin will soon be moving up again. The moving averages are narrowing and strong investor demand indicates that Bitcoin could be set for a short-term increase under market conditions that remain fluid.
