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Bitcoin Bull Trend Continues Despite Pullback, Analyst Says


The analyst explained how the on-chain index data could suggest a bullish trend still exists in Bitcoin despite the recent pullback.

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Bitcoin Coinbase Flow Pulse Still Shows Bull Market

In a new post on X, CryptoQuant writer Axel Adler Jr talked about the latest Bitcoin Coinbase Flow Pulse trend. “Coinbase Flow Pulse” refers to an index that keeps track of the total amount of BTC flowing into Coinbase from other central markets.

Here is a chart shared by an analyst, showing the trend in the 30-day and 90-day moving averages (SMAs) of this index over the past few years:

Looks like the two lines have both been heading up for a while now | Source: @AxelAdlerJr on X

As shown in the graph above, Bitcoin Coinbase Flow Pulse has seen both of these SMAs rise since the beginning of 2023, suggesting a long-term trend of increasing revenue to Coinbase from other platforms.

Currently, 30 days is still higher than 90 days, which means that income continues to accelerate. From the perspective of this indicator, whenever these two lines are arranged in this way, Bitcoin can be considered to be in a bull market.

Times when this condition holds true are highlighted in green on the chart. It may appear that the metric has seen a bearish crossover several times since this development began, with each ‘bear’ period lasting a short time.

In recent days, the price of Bitcoin has seen significant bearish momentum, but so far, this indicator has not shown any signs of a bearish cross. “Despite the local pullback, the bullish trend continues,” the analyst noted.

As for why transfers from other markets to Coinbase are considered bullish, the reason lies in the type of users who perform their trading activities on the platform. Coinbase is primarily used by US investors, especially large institutional organizations, who tend to be market drivers.

Joining Coinbase means that the demand for such users is high, which can eventually be reflected in the value of the cryptocurrency. Coinbase Flow Pulse is not the only indicator used to measure demand from American investors, there is also Coinbase Premium Gap, which tells us about temporary changes in demand.

This indicator measures the difference between the Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair). Binance is used by global traffic, so the value of this metric represents the difference in behavior between US and global users.

Below is a chart of the 1-hour version of this indicator shared by an analyst in the CryptoQuant Quicktake post.

Bitcoin Coinbase Premium Gap

The value of the metric appears to have gone up recently | Source: CryptoQuant

As the price has highlighted on the graph, the 1-hour Bitcoin Coinbase Premium Gap has shown a break above the daily recently, which could be a sign that buying from Coinbase users is starting to take off.

BTC price

Bitcoin has taken a sideways move since entering the month as its price is still trading around $61,300.

Bitcoin price chart

The price of the coin has seen a net decline over the past few days | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com



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