Bitcoin’s Coinbase premium index has rocketed to its highest extreme since February 20. This surge comes on the heels of a 5% BTC bull run on March 19. This increase indicates robust buying demand from U.S. investors and points to a Bitcoin price of $90,000. The Coinbase premium index measures the price difference between BTC pairs on Coinbase compared to the premium Binance. A positive value typically indicates that U.S. investors are demonstrating more aggressive buying pressure.
Decoding the Coinbase Premium Index
The Coinbase premium index is a popular indicator of U.S. retail interest in Bitcoin. On the flipside, it can be an early sign of heavy accumulation by U.S. institutional players and whales. Coinbase Advanced landed in this early 2024 timeframe after folded-in the former Coinbase Pro. Today we see firms like Strategy and Tesla prefer it for their BTC purchases. Tethered to this platform’s vibrancy is the premium index, which is a clear and informative signal of institutional investment.
Woominkyu’s Coinbase premium analysis corroborates this, showing that the 30-day EMA of the index has recently crossed above the 100-day EMA level. This crossover is always seen as a sign that big players are entering the space, adding more fuel to the bullish fire.
Technical Indicators and Price Predictions
Today, Bitcoin’s price $89,700 is at an important crossroads, as it sits threateningly below $90,000. The orange line on Bitcoin’s 1-day chart on CryptoQuant indicates the 200-day exponential moving average (EMA). This EMA could very well serve as that crucial line in the sand level to watch. Historically, whenever prices stay above this EMA, the chances of an uptrend continuation rise with it, granting Bitcoin momentum to set higher highs.
Despite the bullish cloud indicators on the EMA, they continue to keep Bitcoin suppressed under the $88,000 and $90,000 levels. That continued resistance further complicates the picture for prices in the near term.
Risks and Bullish Scenarios
As much as the signs are reassuring though, a correction downwards under $73,000 is still very much in play and poses an active risk. As a result, marties should approach this market with care. If a daily candle closes below $85,000 before this week is over, the bullish narrative will be quite invalidated.
