One analyst has explained how data from an on-chain indicator could suggest there is still an uptrend for bitcoin despite the latest pullback.
bitcoin Coinbase Flow Pulse Still Indicates Bull Market
in a newx.com/AxelAdlerJr/status/1842111879247769912″ target=”_blank” rel=”noopener nofollow”> mail At x, CryptoQuant author Axel Adler Jr talked about the latest trend in bitcoin Coinbase Flow Pulse. The “Coinbase Flow Pulse” refers to an indicator that tracks the total amount of btc flowing into Coinbase from other centralized exchanges.
Here is the chart shared by the analyst, showing the trend of the 30-day and 90-day simple moving averages (SMA) of this indicator over the past few years:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Bullish-Trend-Persists-Despite-Pullback-Analyst-Says.jpeg" alt="bitcoin Flow Pulse Coinbase” width=”2048″ height=”1152″/>
Looks like the two lines have both been heading up for a while now | Source: x.com/AxelAdlerJr/status/1842111879247769912/photo/1" target="_blank" rel="noopener nofollow">@AxelAdlerJr on x
As shown in the chart above, bitcoin Coinbase Flow Pulse has seen both of these SMAs rise since early 2023, suggesting there has been a long-term trend of increasing inflows to Coinbase from other platforms.
Currently, the 30-day bond is still above the 90-day bond, meaning inflows continue to accelerate. From the perspective of this indicator, as long as these two lines are arranged in this way, it can be assumed that bitcoin is in a bull market.
The periods in which this condition was met are highlighted in green on the graph. It would appear that the metric has only seen a bearish crossover a few times since this uptrend began, with each “bearish” period lasting only a moment.
Over the past few days, bitcoin price has seen notable bearish momentum, but so far, this indicator has shown no signs of a bearish crossover. “Despite the local decline, the upward trend persists,” says the analyst.
As for why a transfer from other exchanges to Coinbase is considered bullish, the reason lies in the type of users who conduct their trading activities on the platform. Coinbase is primarily used by US-based investors, especially large institutional entities, which tend to be the market drivers.
The inflows to Coinbase imply that demand from such users has increased, which may end up being reflected in the value of the cryptocurrency. The Coinbase Flow Pulse is not the only indicator used to measure US investor demand, there is also the Coinbase Premium Gap, which tells us about short-term changes in demand.
This indicator measures the difference between bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair). Binance is used by global traffic, so the value of this metric basically represents the difference in behavior between US and global users.
Below is a chart for the 1-hour version of this indicator shared by an analyst on CryptoQuant Quicktake. btc-Increase-Indicated-by-Coinbase-Premium” rel=”nofollow noopener” target=”_blank”>mail.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Bullish-Trend-Persists-Despite-Pullback-Analyst-Says.png" alt="bitcoin Coinbase Premium Gap” width=”1280″ height=”551″/>
The value of the metric appears to have gone up recently | Source: btc-Increase-Indicated-by-Coinbase-Premium" target="_blank" rel="noopener nofollow">CryptoQuant
As highlighted in the chart, the 1-hour Coinbase bitcoin premium gap has shown a break above the daily recently, which may be a sign that purchases from Coinbase users are starting to increase.
btc Price
bitcoin has adopted a sideways movement since its crash at the beginning of the month, as its price is still trading around $61,300.
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The price of the coin has seen a net decline over the past few days | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
