Bitcoin Price Approaches $100,000 Amid Low Coinbase Premium Index
Bitcoin is approaching the $100,000 mark, trading above $98,000 for the first time since December 2022. Crypto analyst Ali Martinez identifies several metrics indicating potential bullish momentum.
Bitcoin Price Surges Amid Coinbase Premium Index Low
The Coinbase Premium Index recently reached -0.23%, its lowest in two years, reflecting a price difference between Bitcoin on Coinbase and other exchanges. A negative premium suggests US investors may be less inclined to pay extra for Bitcoin, but the current rebound could indicate growing institutional interest.
Martinez notes that over 48,000 BTC, valued at more than $4.5 billion, were withdrawn from exchanges in the past week, suggesting bullish investor sentiment despite a previous price correction. He emphasizes the need for Bitcoin to maintain a close above the 50-day moving average (MA), currently just above $96,000, to avoid potential downward corrections. Sustaining this level could confirm a stronger bullish trend.
Strong Upward Move Expected After Wave Three Breakout
The Elliot Wave Academy's technical analysis indicates Bitcoin is in the fourth wave of a larger bullish cycle. Following a breakout from a price channel, Bitcoin has surpassed the ideal level of wave three, suggesting a strong upward move. The fourth wave typically exhibits a sideways pattern after the rise of wave three.
Potential correction zones have been identified; breaching these levels could target Bitcoin prices between $117,475.70 and $138,058.37, attracting further investment.
In summary, significant withdrawals from exchanges, a low Coinbase Premium Index, and positive Elliott Wave analysis indicate a positive outlook for Bitcoin. However, investors should monitor critical price levels to gauge future market movements.
Currently, Bitcoin is trading at $98,320.
Featured image from DALL-E, chart from TradingView.com