CryptoQuant identifies growing investor interest in Bitcoin via the Coinbase Premium Index, hinting at potential short-term price growth.
What Is the Coinbase Premium Index?
The Coinbase Premium Index tracks the price difference between Bitcoin on Coinbase and other exchanges, often serving as a proxy for U.S.-based investor interest. CryptoQuant uses this index to evaluate Bitcoin's short-term momentum by analyzing 24-hour and 168-hour moving averages on a 1-hour timeframe.
Why Analysts Are Optimistic
Despite the recent price correction that saw Bitcoin drop from $66,000 to $61,000, CryptoQuant notes strong demand from U.S. investors. This demand is reflected in the increasing Coinbase Premium, suggesting American buyers are accumulating Bitcoin. Analysts believe the narrowing gap between daily and weekly averages may indicate forthcoming price movements.
Opportunities for Short-term Growth
CryptoQuant emphasizes that while the recent correction caused concern, strong buying activity from U.S. investors may support a short-term Bitcoin recovery. Historical data shows that the formation of a 'Golden Cross' often precedes price increases.
Market conditions and U.S. investor interest may play a crucial role in maintaining a positive trend for Bitcoin in the near term.
