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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 Martínez has highlighted several critical metrics that could indicate further bullish momentum for the leader. cryptocurrency as the market begins to recover.
bitcoin Price Surges Amid Low Coinbase Premium Index
One of the significant indicators <a target="_blank" href="https://x.com/ali_charts/status/1875249015207432451″ target=”_blank” rel=”nofollow”>discussed de Martínez is the Coinbase Premium index, which recently hit -0.23%, its lowest point in two years. This index measures the price difference between bitcoin on Coinbase and other exchanges.
A negative premium suggests that US-based investors may be less willing to pay a premium for bitcoin, but the current rally could signal a shift towards growing institutional interest in the asset.
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Martinez too <a target="_blank" href="https://x.com/ali_charts/status/1875211518725218807″ target=”_blank” rel=”nofollow”>noted That the recent rally in bitcoin price comes amid a notable withdrawal trend, with more than 48,000 btc, valued at more than $4.5 billion, withdrawn from exchanges last week. This trend indicates bullish sentiment among investors, despite a brief price correction that occurred late last year.
Despite these positive signs, Martínez warns that bitcoin is at a crucial moment. He <a target="_blank" href="https://x.com/ali_charts/status/1875168113756701044″ target=”_blank” rel=”nofollow”>emphasized the importance of maintaining a close above the 50-day moving average (MA), currently just above $96,000.
If this level is not maintained, a possible downward correction could occur. On the contrary, a sustained close above the 50 day AM could signal the end of the recent correction and confirm a stronger uptrend.
Strong upward movement expected after third wave breakout
In addition to Martínez's ideas, the Elliot Wave Academy has provided a <a target="_blank" href="https://x.com/waves_academy/status/1875154853929918630″ target=”_blank” rel=”nofollow”>technical analysis of bitcoin's recent price movements, suggesting that the cryptocurrency is currently in the fourth wave of a broader bull cycle.
The academy's analysis indicates that after a powerful breakout of a price channel, bitcoin successfully surpassed the ideal third wave level, which may indicate a strong bullish movement. He fourth waveAccording to their analysis, it is characterized by a sideways pattern after the strong rise of the third wave.
Possible correction zones for this wave have been identified and should these levels be breached, the next upward wave could target a bitcoin price range between $117,475.70 and $138,058.37. These figures represent important bullish targets that could attract more investments and boost the price of bitcoin.
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Overall, as the price of bitcoin continues its upward trajectory, the combination of significant withdrawals of exchangesa low Coinbase Premium index and positive Elliott Wave analysis paint a compelling picture for the future of the cryptocurrency.
However, investors should remain alert and watch for critical price levels that could determine the market's next move.
At the time of writing, the market-leading crypto is trading at $98,320.
Featured image of DALL-E, chart from TradingView.com
