Bitcoin’s recent price changes are gradually increasing the bearish sentiment surrounding its price among crypto enthusiasts and investors. However, positive developments are being considered all around Coinbase Premiumthe crypto asset may prepare for a potential leg in the short term, which creates hope among the public.
Coinbase Premium Shows Bitcoin’s Short-Term Rally
Due to deteriorating market conditions, Coinbase Premium, the main indicator of investor sentiment is currently showing positive trends, fueling the strength of the short-term rally of Bitcoin, according to data from the on-chain analytic platform, CryptoQuant.
Coinbase Premium measures the difference in BTC price in Coinbase platform and other cryptocurrency exchanges. If there is good learning, this usually reflects that of the institution investors in the United States they have a lot of pressure to buy digital goods.
In a fast-paced post, an expert known as Yonsei Dent says a meeting may be imminent Bitcoin following the analysis of the Coinbase Premium Index at the time of 1 hour to determine the short-term momentum by using the 24-hour and weekly average.
Using this signal in conjunction with BTC’s historical price movements, Dent highlighted that when a golden cross forms, the crypto asset often sees a brief price spike. This is because, historically, there has been a significant price swing just after the moving average on the 1-day time frame forms the golden cross by profitably exceeding the weekly moving average.
Meanwhile, the index has currently broken the weekly moving average for a while again, and the difference between the weekly and daily average is steadily closing, indicating the possibility of a price increase in the near future.
He also emphasized the renewed rising pressure as the reason why a continuous increase in demand among US investors despite the price correction witnessed on Tuesday, when BTC fell from around $66,000 to $61,000 limit. According to experts, this continued growth in demand may indicate that the price of Bitcoin may be ready to rebound in the short term.
Does the Dip Dip Happen Before the Meeting?
Even though BTC is set for a rally in the near future, there is a chance that the crypto asset could see a dip ahead. to climb once again. Market expert and enthusiast, Crypto Bullet in a recent post on X (formerly Twitter). he warned of the price drop to the $57,000 level.
Crypto Bullet noted that at the time of the post, Bitcoin was trading in a price range in between $59,000 and $60,000which they emphasized about 5 days ago when BTC was worth $65,000. So he believes that the price could go down a bit to $57,000, hopefully after a little bit of upside. “We need to rule out the September 16 low at $57,500 and I believe the $57,000 dip will be the lowest for the month,” he added.
Featured image from Unsplash, chart from Tradingview.com