Bitcoin (BTC) prices have been on the decline in recent weeks, but a new report says that this is not a cause for concern. analysisThere could be some signs of an uptrend in the short term.
Yonsei dent, CryptoQuant’s analyst, provided his insight on the CryptoQuant QuickTake Platform, with a focus on Coinbase Premium Index. impact on Bitcoin’s price movement.
Key Indicators For 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 suggested using moving averages for the short term. AHistorically, the break of the weekly moving avg. by the daily average has been an indicator that the short-term momentum is gaining strength. positive signal Bitcoin Price.
Dent mentioned past examples where the technical pattern often called an “golden cross,” Bitcoins’ value increased in the short term.
A golden cross is a technical term that occurs when the short-term average crosses over the long-term average.
This pattern is considered bullish, indicating potential upward momentum in an asset’s price. It indicates an increase in buying and a shift from pessimism to optimism.
Dent suggested that it could be an indication of a possible trend. key support Bitcoin has reached a new high, especially around $66.4,000.
A positive momentum and higher lows could indicate an uptrend
BTC continues to decline slowly after trying to recover the $70,00 price on Monday. The asset may have encountered major resistance at that price. BTC’s current price is $65,832.
Dent’s Analysis points out, despite this price movement, that since August the asset had been making higher highs and lower lows. This pattern is usually considered bullish.
This upward pattern, with both the highs and lows increasing gradually, could indicate that the price recovery is becoming more durable.
Dent’s mention of the Coinbase Premium Index strengthens this theory, since increased premiums are often seen on Coinbase. indicate stronger buying pressure Investors from the US. If the present patterns continue, the analyst believes that this momentum will be sustained in the near future.
Chart created by TradingView, DALL-E.
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Source: www.newsbtc.com
