Bitcoin has recently seen a 2.28% rise, climbing from a local low of $55,629 to $58,401. This recovery follows a sharp decline to $52,732, raising questions about whether Bitcoin will experience a sustained rally or face another dip. The situation is becoming more intriguing as data from the Coinbase Premium suggests that a major price move could be possible.
Coinbase Premium’s Convergence: A Signal for a Major Move?
One key indicator that analysts are watching is the Coinbase Premium, which reflects the price difference between Bitcoin on Coinbase and Binance. According to the latest 1-hour chart, the volatility in the Coinbase Premium has decreased, and both the upper and lower bounds of the price range are converging into a triangular pattern.
This pattern is often seen as a sign of imminent major price movement. Historically, during the 2021-2022 bull market, a similar triangular convergence was seen in the Coinbase Premium before Bitcoin surged to new all-time highs.
If history repeats itself, this narrowing price gap could suggest that the market is finding its fair value, with a decisive upward or downward move likely on the horizon. Large investors, seem to be in a standoff, waiting for the next big shift in Bitcoin’s price.
BTC Still in a Bearish Phase
While Bitcoin’s recent gains are encouraging, it’s important to note that, BTC remains in a bear phase as it is trading below the $62k price level. Bitcoin’s market value to realized value (MVRV) ratio has been below its 365-day moving average since August 26, signaling bearish market conditions.
Analysts suggest that this bear phase could delay any major rally unless Bitcoin breaks out of this consolidation.
Be the first to comment