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In a promising development, the price of Bitcoin is inching closer to the coveted $100,000 mark as it trades above $98,000 for the first time since late December.
Crypto analyst Ali Martinez highlighted a few critical metrics that could indicate further earnings momentum crypto currency as the market begins to recover.
Bitcoin Price Rises Amid Coinbase Premium Index Low
One of the important indicators discussed by 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.
The negative premium suggests that US-based investors may be less willing to pay a premium for Bitcoin, but the current rally may signal a shift in increasing institutional interest in the asset.
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Martinez again noted that the recent rise in the price of Bitcoin comes amid a significant withdrawal trend, with more than 48,000 BTC—a value of more than 4.5 billion—being removed from the exchange last week. This trend shows a positive outlook among investors, despite the short price correction that occurred late last year.
Despite these positive signs, Martinez warns that Bitcoin is in a critical situation. He he insisted the importance of supporting a close above the 50-day moving average (MA), currently just above $96,000.
Failure to maintain this standard can result in severe downward correction. On the other hand, continuous closure over the 50 days of MA it can indicate the end of a recent correction and confirm a strong bullish trend.
A Stronger Upward Expected After the Third Wave Breakout
In addition to Martinez’s insight, Elliot Wave Academy has provided a technical analysis of recent Bitcoin price movements, suggesting that the cryptocurrency is currently in the fourth wave of a major bullish cycle.
The analysis of the institute shows that after the strong breakout of the price channel, Bitcoin has succeeded in passing the relevant level of three waves, which may indicate a strong upward movement. I the fourth waveaccording to their analysis, it is characterized by a lateral pattern following the sharp rise of three waves.
Potential correction points for this wave have been identified, and if these levels are breached, the next upward wave could point to a Bitcoin price range between $117,475.70 and $138,058.37. These statistics represent important targets that can attract more investment and increase the price of Bitcoin.
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Everywhere, as the price of Bitcoin continues its rise, a combination of significant withdrawals from it exchangea low Coinbase Premium index, and a positive Elliott Wave analysis paint a depressing picture for the future of cryptocurrency.
However, investors should remain vigilant, looking for key price levels that can determine the next move of the market.
At the time of writing, the market leading crypto is trading at $98,320.
Featured image from DALL-E, chart from TradingView.com