Finally after more than 1 week locked in an ascending wedge-named chart, Bitcoin managed to escape over the top, and an indicator that I will introduce to you today tells us that we should see bigger gains.
At the time of this writing, BTC is trading at $ 50,861.30, accumulating a gain of 3.69% according to data from the ProBit exchange.
Bitcoin price daily chart: Source: ProBit.
First, it is important to clarify that an ascending wedge indicates a reversal of the trend, but apart from the fact that it is one of the least reliable figures, as long as its support is not broken, nothing is confirmed.
As long as Bitcoin was holding intact supports, it was most likely still that the lateral behavior it was in was nothing more than a break before continuing its previous trend.
With the exhaust we are seeing, able to conquer the terrain above 50k, the space is clear for greater gains, and this is confirmed by various indicators.
Now yes, discover below the indicator that I have been talking about.
Bitcoin Indicator: Coinbase Premium Index
Graphically represented as an oscillator, this index shows us the price difference between Coinbase’s BTCUSD pair and Binance’s BTCUSDT pair.
The higher the premium, the indicator is warning us of a greater accumulation of BTCUSD whales on Coinbase despite the high price.
The Bitcoin bull rally in 2020 was primarily driven by institutional investors and high net worth individuals in the United States. The vast majority of them use Coinbase as a means to acquire the asset.
When BTC topped $ 20,000, $ 30,000, and $ 40,000, the Coinbase premium was over $ 50.
This is how this indicator stands today
Yesterday with the failed attempt of the price of Bitcoin to exceed 50k, I repeated the signal given by the CEO of CryptoQuant, where he warned the low influx of whales in Coinbase.
The Coinbase premium was negative, and we had to see a cooldown first to think about a further rally.
Indeed it did, and today with a new all-time high, those strong hands are making a comeback. Even with the high price the buying pressure is still there.
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