CryptoQuant QuickTake analyst has published a new article. drawn attention A particular trend is tied to Coinbase Premium Index CPI, which suggests that the current market price of Bitcoin has increased. grim move brewing Bitcoin.
The Simple Moving Average of the last 14 days (SMA14), when combined with this indicator, has frequently shown an important correlation with Bitcoin’s selling pressure. This shows how significant its influence is on market.
Coinbase Index: A Bull or Bear?
It is important to understand what this indicator is all about before diving deeper into the current Bitcoin Coinbase Premium Index. The Coinbase Premium Index is a tool which measures the difference between the price of Bitcoin on Coinbase Pro compared to other major exchanges.
Bitcoin’s price is reflected in a negative CPI. lower price Coinbase Pro has a higher price than the other platforms. Typically, this indicates an increase in selling pressures on US markets.
Read Related Articles: Bitcoin Eyes $63,000: Key Indicators Signal Further Decline – Time To Sell?
According to the CryptoQuant analyst with the name ‘burakkesmeci,’ this phenomenon has been observed more frequently after the US approved the trading of spot exchange-traded funds (ETFs), which currently seems to have amplified the significance of CPI as a leading indicator.
Selling pressure is increased when the Coinbase Premium Index falls below SMA14
“Examining the data for 2024, we clearly see that Bitcoin price corrections have occurred when the CPI (Coinbase Premium Index) fell below its’ SMA14.” – By @burak_kesmeci
Link 👇https://t.co/Bc3N1cfh5W pic.twitter.com/tN99LNhNkr
— CryptoQuant.com (@cryptoquant_com) July 30, 2024
Analysts revealed that the 2024 data shows a pattern. Bitcoin’s price is often corrected when CPI falls below SMA14. This particular behaviour suggests a bearish sentiment When the index is below the moving average it signals increased sales activity.
The CPI is currently at 0.008, while the SMA14 stands at 0.20. Burakkesmeci explains this difference.Bitcoin: Source: CryptoQuant “indicates that sellers have a stronger hand in the US market.”
Bitcoin Market Performance
When you look at the performance of Bitcoin on the market, it is clear that this phenomenon has been a huge success. seller-driven market, CPI appears to confirm this. Bitcoin currently trades for $65,805, which is a decrease of roughly 2% from the previous week and approximately 3% over the past day.
Market cap of the asset has fallen by $40 billion over the course of the day. However, its 24 hour trading volume has increased from $30 billion to $36.7 Billion at this time.
Crypto analysts are able to predict the future price of bitcoin regardless of its performance. remain optimistic. Crypto Rover is a well-known enthusiast of the crypto world. He revealed that Bitcoin was currently consolidating in a prominent bull flag pattern.
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Rover claims that “This is the worst time to be bearish. The breakout will be massive.”
#Bitcoin This is one of my largest ever bull-flags.
The worst possible time to bearish is now.
It will be a massive breakout. pic.twitter.com/oauSgiBNRY
— Crypto Rover (@rovercrc) July 30, 2024
The featured image was created using DALLE and the chart from TradingView
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Source: www.newsbtc.com
