We analyzed the Coinbase Premium Index on a 1-hour time frame to observe short-term momentum, utilizing the 24-hour (daily) and 168-hour (weekly) moving averages for added context. Historically, when the daily moving average forms a golden cross by crossing above the weekly moving average with strong momentum, we observed significant price movements shortly after that.
At present, the index has once again temporarily broken above the weekly moving average (indicated by the black arrow), and the gap between the daily and weekly averages is steadily narrowing.
Looking at past Bitcoin price movements alongside this indicator, we can see that the price often experiences short-term increases when a golden cross is formed, as highlighted by the shaded gray region.
For example, despite the price correction from $66k to approximately $61k around October 1st, the continued rise in demand from US-based investors suggests renewed upward pressure. This consistent demand, as reflected by the Coinbase Premium, could signal a potential short-term recovery in Bitcoin’s price.
Written by Yonsei_dent
