Bitcoin Price to Recover Soon? This Popular Indicator Gives Hints

[5/10/2024]
Crypto markets fell sharply as geopolitical tensions escalated following Iran’s missile attack on Israel. For example, Bitcoin fell below $60,500 before a modest recovery. Nevertheless, demand from U.S. investors remains high, according to recent survey results. This trend could give Bitcoin a respite from the bear market.

US Investor Demand Remains Strong

CryptoQuant pointed out the possibility of a short-term rise in Bitcoin prices in an article on October 3. The Coinbase Premium Index indicates that Bitcoin prices may rise in the short term. By tracking the 1-hour time frame and comparing the 24-hour and 168-hour moving averages, CryptoQuant analyst Yonsei_dent found that bullish indicators appear when the daily moving average forms a golden cross above the weekly average. The daily average is currently temporarily above the weekly average, and the gap between the two is narrowing, indicating bullish momentum. In the past, this pattern has led to short-term price increases, as seen on October 1, when strong demand from US investors pushed up Bitcoin prices despite a correction. The current rise in Coinbase Premium indicates a similar situation, and growing demand from US investors may indicate a recovery in Bitcoin prices.

Bitcoin Sees Record Outflows from Exchanges

Adding to this bullish thesis, further analysis by CryptoQuant found that Bitcoin saw its largest outflow from exchanges since November 2022, suggesting a shift in market sentiment. On-chain data shows a significant increase in outflows, with the 30-day, 50-day, and 100-day moving averages reflecting this trend. Large outflows typically indicate that investors are moving Bitcoin to private wallets, reducing the supply on exchanges, which could put much-needed upward pressure on the asset's price. This trend often suggests that investors are confident in Bitcoin's long-term potential and are choosing to hold rather than trade, which could be an optimistic indicator of future market activity. The post Will Bitcoin Price Recover Soon? This Popular Indicator Gives Tips appeared first on CryptoPotato.

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