bitcoin (btc) has seen a slight price drop recently, but according to a new btc-short-term-uptrend-potential-as-seen-from-Coinbase-Premium” target=”_blank”>analysisThere could still be signs of a possible short-term uptrend.
A CryptoQuant analyst, Yonsei Dent, shared his thoughts on the CryptoQuant QuickTake platform, focusing on the Coinbase Premium index and its impact on bitcoin price movement.
Key Indicators of bitcoin Short-Term Momentum
Dent's analysis takes a closer look at how the movement of the Coinbase Premium Index (a measure of the price difference between bitcoin on Coinbase and other exchanges) could indicate potential price trends for bitcoin.
Dent highlighted the use of daily (24-hour) and weekly (168-hour) moving averages to assess near-term momentum. Specifically, when the daily moving average exceeds the weekly moving average, it has historically been a positive sign for the price of bitcoin.
Dent referred to past cases where this technical pattern, often called the “golden cross,” indicated a short-term increase in the value of bitcoin.
<img src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin39s-Current-Decline-Could-Be-Temporary-–-Key-Signs-of.png" alt="Coinbase bitcoin Premium Index. ” />
For context, a golden cross in technical analysis occurs when a short-term moving average (usually the 50-day) crosses above a long-term moving average (often the 200-day).
This pattern is considered bullish and indicates possible bullish momentum in the price of an asset. It suggests that buying interest is increasing and market sentiment is shifting towards optimism.
The daily moving average has temporarily surpassed the weekly moving average, leading Dent to suggest that this could be a key support level for bitcoin, particularly around the $66.4000 mark.
Higher lows and positive momentum could indicate an uptrend
So far, btc has continued to fall gradually after trying to recover the price of $70,000 on Monday. This suggests that the asset could have encountered major resistance in that price region. At the time of writing, btc has fallen 2.2% in the last day with a current trading price of $65,832.
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Despite this current price movement, Dent's analysis notes that the asset has been forming higher highs and higher lows since August, which is generally considered a bullish pattern.
This bullish structure, in which both the lows and highs gradually rise, could indicate that the market is moving towards a more sustainable price recovery.
Dent's reference to Coinbase's premium index further reinforces this possibility, as rising premiums on Coinbase often indicate increased buying pressure from US-based institutional investors. The analyst expects this Bullish momentum continues in the short term if current patterns hold.
Featured image created with DALL-E, TradingView chart
