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In a promising development, Bitcoin price is approaching the coveted $100,000 mark as it trades above $98,000 for the first time since late December.
Cryptocurrency analyst Ali Martinez highlighted several important metrics that could indicate further upward momentum for the drive Cryptocurrency When the market starts to recover.
Bitcoin price rises amid decline in Coinbase Premium index
One of the important indicators discussion From Martinez is the Coinbase Premium Index, which recently reached -0.23%, its lowest point in two years. This indicator measures the price difference between Bitcoin on Coinbase and other exchanges.
A negative premium suggests that US-based investors may be less willing to pay a premium for Bitcoin, but the current recovery may signal a shift toward increased institutional interest in the asset.
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Martinez too male The recent rise in Bitcoin’s price comes amid a notable withdrawal trend, with more than 48,000 Bitcoin – worth more than $4.5 billion – withdrawn from exchanges in the past week. This trend indicates bullish sentiment among investors, despite the brief price correction that occurred late last year.
Despite these positive signs, Martinez warns that Bitcoin is at a critical juncture. he Confirm The importance of maintaining a close above the 50-day moving average (MA), which is currently above $96,000.
Failure to maintain this level may lead to a possible downward correction. On the contrary, a continuous close above MA for 50 days This could signal the end of the recent correction and confirm a stronger uptrend.
A strong upward movement is expected after the breakout of the third wave
In addition to Martinez’s insights, Elliott Wave Academy provided a Technical analysis of Bitcoin’s recent price movements, suggesting that the cryptocurrency is currently in the fourth wave of a larger bull cycle.
Academy analysis indicates that after a strong breakout of the price channel, Bitcoin successfully crossed the ideal level of the third wave, which could indicate a strong upward movement. the Fourth waveIt is characterized, according to their analysis, by a sideways pattern after the sharp rise of the third wave.
Potential correction zones have been identified for this wave, and if these levels are breached, the next bullish wave could target the Bitcoin price range between $117,475.70 and $138,058.37. These numbers represent major upside targets that could attract further investment and push the price of Bitcoin higher.
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All around, as the price of Bitcoin continues its upward trajectory, a mix of significant withdrawals from… ExchangesThe lower Coinbase Premium Index and positive Elliott Wave analysis paint a compelling picture for the future of the cryptocurrency.
However, investors must remain vigilant, and keep an eye on critical price levels that could determine the market’s next move.
At the time of writing, the market-leading cryptocurrency is trading at $98,320.
Featured image of DALL-E, chart from TradingView.com