Bitcoin is witnessing a notable resurgence with the return of the ‘Coinbase premium,’ suggesting increased retail investor demand as prices surpass $65,000. This potential bullish September aligns with substantial inflows into Bitcoin ETFs, indicating renewed institutional interest. Bitcoin has broken a five-month bearish trend, forming a bullish pattern that could suggest a long-term uptrend, although pullbacks may occur.

Bitcoin, the prominent cryptocurrency, is currently experiencing a significant resurgence, marked by the re-emergence of the much-discussed ‘Coinbase premium.’ Traditionally, September has represented a bearish period for Bitcoin; however, this year is shaping up to be distinctly different, potentially leading to its best September performance ever. Historically, the highest gain in September was observed in 2016, where Bitcoin rallied by 6%. Furthermore, Bitcoin has consistently demonstrated gains during the fourth quarter following a bullish last month of the third quarter, with notable instances in 2015, 2016, and now, 2023, suggesting the possibility of a bullish quarter ahead in 2024. A report from Julio Moreno, Head of Research at Cryptquant, sheds light on a pivotal metric—the Coinbase premium. On September 26, it reached a two-week high as Bitcoin’s price surpassed the $65,000 mark, indicating a potential increase in retail investor demand in the United States. An elevated Coinbase premium signals heightened buying pressure among retail investors. Additionally, this resurgence aligns with a notable increase in daily inflows for spot Bitcoin Exchange-Traded Funds (ETFs). According to Cointelegraph, the total inflows for 11 spot Bitcoin ETFs amounted to $365.7 million on September 26, coinciding with Bitcoin achieving new monthly price highs. This trend suggests that institutional investors are gradually refocusing on Bitcoin, particularly in light of favorable interest rate cuts announced earlier in the month. Moreover, data illustrates that the cumulative volume delta for spot trading across all exchanges reached a new monthly high, dominated by net buying activity. This pattern further implies the potential return of retail investors to the market; however, further evidence is required to substantiate this trend. On September 23, Cointelegraph reported Bitcoin’s efforts to break through the $65,000 resistance level in pursuit of establishing a higher high pattern. Within three days, Bitcoin successfully closed a daily candle above this resistance, marking the first bullish pattern formation in five months and breaking a previous bearish trend. This high-time-frame (HTF) breakout suggests a potential formation of a new long-term trend. Nevertheless, it is essential to acknowledge that the current higher high (HH) and higher low (HL) structure may experience pullbacks in the near future, though such retracements would merely highlight a bullish trend swing low. The key resistance levels to monitor are currently set at $68,100 and $71,500, which Bitcoin had struggled to surpass during the summer months.

The phenomenon known as the ‘Coinbase premium’ refers to the disparity between the price of Bitcoin on Coinbase and other exchanges, often regarded as an indicator of retail demand. A rising Coinbase premium typically reflects increased buying activity among U.S. retail investors. September has historically been a challenging month for Bitcoin, yet patterns have begun to emerge suggesting a favorable shift, potentially leading to a rewarding quarter for Bitcoin holders. The increasing attention from both retail and institutional investors, highlighted by substantial inflows into Bitcoin ETFs, denotes a growing confidence in the asset.

In summary, the current landscape for Bitcoin is characterized by a potentially bullish September, marked by the return of the Coinbase premium and substantial inflows into Bitcoin ETFs, signaling renewed interest from both retail and institutional investors. As Bitcoin navigates through critical resistance levels, the formation of a higher high pattern indicates a possible shift toward a long-term uptrend, despite the potential for short-term corrections. Investors remain advised to closely monitor ongoing developments and market dynamics.

Original Source: cointelegraph.com

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