As a seasoned crypto investor with a knack for deciphering market trends, I find the recent analysis from CryptoQuant intriguing. The narrowing Coinbase Premium, as highlighted by ‘Avocado Onchain’, seems to suggest a significant move ahead for Bitcoin.
A recent examination by CryptoQuant suggests that Bitcoin‘s price could experience a substantial shift, based on a metric called the Coinbase Premium.
An analyst using the name ‘Avocado Onchain’ pointed out today that the difference in Bitcoin prices between Coinbase and Binance, known as the Coinbase Premium, appears to be narrowing down.
As the cost of Bitcoin decreases, it appears to be nearing its true worth, causing some people to think that a significant shift may occur soon.
How Does The Coinbase Premium Suggest Big Move Ahead For Bitcoin?
On Coinbase, the Coinbase Premium signifies the gap between the Bitcoin price on Coinbase versus other platforms like Binance. When this difference is significant, it’s usually an indication that American institutional investors, who tend to prefer Coinbase, are actively purchasing more Bitcoin, causing the price to increase.
In contrast, a low or negative premium suggests that these investors might be selling or there’s a greater demand on other platforms such as Binance.
As an analyst, I’ve noticed a significant reduction in the Coinbase Premium over the last few weeks. The price disparity between Coinbase and Binance, which was once noticeable, has been gradually diminishing.
As per the expert’s analysis, this combination forms a triangle shape on the one-hour graph, indicating an imminent significant price shift. The exact direction of this shift is yet to be determined, but historical data suggests that similar triangle patterns have often preceded substantial increases in Bitcoin’s price.
In other words, much like what happened during the 2021-2022 cryptocurrency bull run, the analyst found that the Coinbase Premium followed a triangular trend. Once this pattern concluded, the value of Bitcoin reached unprecedented peaks.
The analysis noted:
It seems to me that the ongoing triangle shape on Coinbase’s Premium is indicating a stalemate between significant investors, or “whales,” who are carefully observing one another’s actions, waiting for the right moment before making their next big move in the market.
BTC Market Performance And Outlook
Following past efforts, Bitcoin briefly surpassed the $58,000 threshold today, reaching a 24-hour peak of $58,435.
Currently, the leading cryptocurrency is trading lower than its previous value, at $57,619, but it has managed to increase by 1.5% over the past day. This information is based on the most recent data available.
Noted cryptocurrency expert Tony “The Bull” has lately spotted a pattern reminiscent of gold in the bitcoin price graph.
Tony observed that if this pattern persists, there might be a potential Bitcoin price of $100,000 within the next six months.
If #Bitcoin continues to follow this #Gold fractal, $100K is coming over the next six months
RSI and SuperTrend exhibit similar behaviors, albeit on vastly different timescales
— Tony “The Bull” Severino, CMT (@tonythebullBTC) September 12, 2024
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2024-09-13 12:04