Flow

United

Bitcoin

Bitcoin may see relief from its recent downturn as United States demand stays high, according to analysis.
In one of its Quicktake blog posts on Oct. 3, on-chain analytics platform CryptoQuant revealed the “possibility of a short-term BTC increase.”
Bitcoin’s price action has delivered several tests of $60,000 support this week amid market jitters over the situation in the Middle East.
Behind the scenes, however, demand is strong — as indicated by the popular Coinbase premium metric.
The Coinbase premium measures the difference in pricing between the BTC/USD pair on the largest US exchange, Coinbase, and Binance’s BTC/USDT equivalent.
Moving averages covering the size of the premium are, in turn, correlated with specific BTC price behavior, as shown by CryptoQuant contributor Yonsei_dent.
“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,” he explained.
“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.”
Such a “golden cross” scenario last occurred late last month, capturing Bitcoin’s move above $66,000.
Yonsei_dent added that “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.”
He concluded: “This consistent demand, as reflected by the Coinbase Premium, could signal a potential short-term recovery in Bitcoin’s price.”
As Cointelegraph reported, Coinbase has seen a positive premium over the Binance return in recent weeks, an encouraging signal for BTC price performance.
Overall, exchanges continue to witness mass withdrawals as BTC/USD tests support, with the tally hitting its highest since the FTX meltdown in November 2022.
Analyzing the Coinbase Flow Pulse tool, which measures shifts into Coinbase from other trading platforms, fellow CryptoQuant contributor Axel Adler Jr. reached similar conclusions on price outlook.
“The Bitcoin inflow to Coinbase from all exchanges remains in the green zone, indicating strong demand for coins in the US market,” he told X followers alongside a chart on Oct. 4.
“Despite the local pullback, the bullish trend persists.”

Bitcoin Set to Rebound After Local Pullback in Early October

Crypto Intelligence

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