BTC Golden Cross: CryptoQuant Predicts Potential BTC Price Surge Using Coinbase Premium Data
On October 3, the on-chain analytics platform CryptoQuant disclosed the possibility of a short-term BTC increase in one of its Quicktake blog posts. This week’s bitcoin price action has produced many attempts at the $60,000 support level amid market anxiety over the Middle East scenario. However, demand is high behind the scenes, as seen by the well-known Coinbase premium statistic. A contributor to CryptoQuant named Yonsei_dent has demonstrated a correlation between certain BTC price behavior and moving averages covering the size of the premium.
We analyzed the Coinbase Premium Index on a 1-hour time frame to observe short-term momentum, utilizing the 24-hour (daily) and 168-hour (weekly) moving averages for added context. Historically, when the daily moving average forms a golden cross by crossing above the weekly moving average with strong momentum, we observed significant price movements shortly after that.
Yonsei_dent
CryptoQuant Analysts Highlight Bullish Outlook for Bitcoin After $66K Correction
The last time a golden cross situation occurred was towards the end of last month, coinciding with Bitcoin’s ascent above $66,000.
Despite the price correction from $66k to approximately $61k around October 1st, the continued rise in demand from US-based investors suggests renewed upward pressure. This consistent demand, as reflected by the Coinbase Premium, could signal a potential short-term recovery in Bitcoin’s price.
Yonsei_dent
As the BTC/USD ratio tests support, exchanges are seeing widespread withdrawals, with the total reaching its biggest level since the FTX collapse in November 2022. Fellow CryptoQuant contributor Axel Adler Jr. came to similar conclusions about the price outlook after analyzing the Coinbase Flow Pulse tool, which tracks transfers into Coinbase from various trading platforms.
The Bitcoin inflow to CoinBase from all exchanges remains in the green zone, indicating strong demand for coins in the US market. Despite the local pullback, the bullish trend persists.
Adler Jr.
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