Bitcoin Coinbase Premium Signals Accumulation, Could $90K Be Reachable?
The Bitcoin Coinbase premium index has surged, indicating strong accumulation by US investors and institutions. Analysts suggest this could promote a bullish trend, with Bitcoin potentially reaching $90,000 if it maintains support above $85,000. However, caution remains as market conditions could lead to corrections below $73,000.
The Bitcoin Coinbase premium index recently surged, reaching its highest level since February 20, following a 5% price rally on March 19. This premium index reflects the pricing disparity between Coinbase and Binance, indicating potential active accumulation of Bitcoin by US investors and institutions, as highlighted by crypto analyst Woonminkyu.
Woonminkyu noted that the index’s 30-day Exponential Moving Average (EMA) has crossed above the 100-day EMA, suggesting the influence of significant players. Historical trends indicate that increases in this indicator often precede sustained BTC bull markets, indicating a pivotal moment for Bitcoin’s momentum.
Furthermore, with Coinbase Pro merging into Coinbase Advanced in early 2024, the Coinbase premium could also reflect heightened US institutional interest.
On Bitcoin’s chart, a bullish pattern emerges as it has reclaimed its position above the 200-day EMA, enhancing the likelihood of an upward trend and the potential to reach $90,000. Following a breakout above the $85,000 barrier, Bitcoin’s ability to maintain this support level boosts the chances of a price test at $90,000.
However, analysts are cautious; a close below $85,000 could negate the bullish outlook for Bitcoin. Michael Van de Poppe, founder of MN Consultancy, remains optimistic about a retest of $90,000, while Max from BecauseBitcoin urges caution, observing that Bitcoin’s momentum is currently hindered by EMA cloud indicators.
Additionally, Koroush AK, a crypto trader, advised maintaining vigilance until market structure shows a clear shift, as the potential for a correction below $73,000 remains a threat.
This article does not offer investment advice; readers are encouraged to conduct thorough research before making financial decisions.
In summary, the Bitcoin Coinbase premium index’s rise suggests significant buying interest from US investors and institutions, which could signal a bullish trend for Bitcoin. While there are strong indicators pointing to a potential retest of the $90,000 mark, caution is warranted due to possible price volatility and market corrections. Analysts continue to monitor key support levels and market dynamics closely.
Original Source: cointelegraph.com
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