Bitcoin, the largest cryptocurrency asset, could be set for positive movement again. Recent developments around Coinbase Premium raise the possibility of creating… Short term walkWhich indicates a positive outlook for BTC in the coming weeks.
A short-term Bitcoin rally is on the horizon
Coinbase Premium, a leading indicator that measures BTC spreads on Coinbase and other cryptocurrency exchanges, displays a potentially optimistic movement for the price of Bitcoin in the near term. That means Institutional investors In the US they are buying crypto assets heavily, indicating high demand and bullish sentiment in the US market, which could cause a short-term rally for BTC as these investors seek to capitalize on its growing power.
Yonsei Dent, a market expert and enthusiast, reported on this development recently Quick job On the leading on-chain analytics platform, CryptoQuant. The expert predicts an imminent short rally after analyzing the Coinbase Premium indicator on the 1-hour time frame and using the 24-hour moving averages and weekly averages to determine the short-term momentum.
After thorough investigation, Dent discovered that when the daily moving average decisively crossed the weekly moving average, significant results were also seen in the price action.
Looking at the previous moves in Bitcoin, the expert highlighted that there was also a short-term rise in the price when… Bitcoin I tried to create a golden cross. This is due to the fact that historically observed price movements have occurred immediately after the one-day moving average forms a golden cross, which occurs when it crosses strongly above the weekly moving average.
In addition, the weekly moving average has been temporarily crossed by the current daily moving average, placing the current price at $66,400 levelwhich is the section where support for the September high may be expected, as indicated by the black arrow on the chart.
As a result, Yonsei Dent expects the market to develop a clear bullish structure as long as the higher highs and lows continue, as the highs and lows have gradually increased since August.
Possible BTC price correction
While the Coinbase premium may indicate an impending rise in the short term, Kyle Dobbs, technical analyst and host of Crypto Banter, said… He pointed out Possible correction in the price of the leading digital asset in the coming days. Kyle Dobbs’ pessimistic forecast is based on analysis Bitcoinquarterly performance by comparing its market value with its realized value, which revealed critical patterns of the market.
After examining the gauge, the expert warned of potential selling pressure and bearish signals if market capitalization growth exceeds the level Maximum achieved. However, achieving a flat ceiling during recessions may indicate market bottoms. “With 2021’s trends repeating, a price correction may be on the horizon,” he added.
Featured image from Unsplash, chart from Tradingview.com
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