Coinbase Premium Approaches ‘Golden Cross’, Indicating Potential Bitcoin Recovery

The conditions for the formation of a ‘golden cross’ in the Coinbase premium suggest a potential short-term recovery in Bitcoin prices, according to CryptoQuant.

The Coinbase premium is often used as an index of retail investor demand in the United States—the higher the value, the greater the buying pressure.

Experts analyzed the metric on an hourly time frame, using a 24 HMA (daily) and 168 HMA (weekly). They explained that significant price movements were observed after the first indicator crossed the second from below.

At the time of writing, the Coinbase premium exceeded the 168 HMA (indicated by a black arrow), and the gap between the moving averages is steadily narrowing, noted CryptoQuant.

The shaded grey area highlights episodes of ‘golden cross’ formation. These periods are characterized by sharp price increases.

“This sustained demand, reflected in the Coinbase premium, signals a possible short-term price recovery,” concluded the experts.

Earlier, CEO of Lekker Capital Quinn Thompson recommended viewing the current Bitcoin correction as an opportunity to increase long positions.

Previously, Canaccord noted that a Bitcoin rally is inevitable.