{"id":632328,"date":"2024-07-31T03:00:29","date_gmt":"2024-07-31T03:00:29","guid":{"rendered":"https:\/\/wncen.com\/?p=632328"},"modified":"2024-07-30T17:24:09","modified_gmt":"2024-07-30T17:24:09","slug":"is-a-major-bitcoin-dip-coming-what-the-coinbase-index-tells-us","status":"publish","type":"post","link":"https:\/\/wncen.com\/bitcoin-news\/is-a-major-bitcoin-dip-coming-what-the-coinbase-index-tells-us\/","title":{"rendered":"Is A Major Bitcoin Dip Coming? What the Coinbase Index Tells Us"},"content":{"rendered":"
An analyst from the CryptoQuant QuickTake platform has now drawn attention<\/a> to a particular trend tied to the Coinbase Premium Index (CPI) which currently suggests a grim move brewing<\/a> for Bitcoin.<\/p>\n This indicator, when placed with its Simple Moving Average over 14 days (SMA14), has often shown a significant correlation with Bitcoin’s selling pressure, shedding light on how crucial its impact is on the market.<\/p>\n Before diving into what the Coinbase Premium Index is currently signalling for Bitcoin, it is worth explaining further the essence of this indicator to grasp the credibility of it. Notably, the Coinbase Premium Index (CPI) is an analytical tool that measures the variance between Bitcoin’s price on Coinbase Pro and its price on other major exchanges.<\/p>\n A negative CPI value suggests that Bitcoin is trading at a lower price<\/a> on Coinbase Pro compared to other platforms, which typically indicates a selling pressure in the US market.<\/p>\n Related Reading: Bitcoin Eyes $63,000: Key Indicators Signal Further Decline \u2013 Time To Sell?<\/a><\/p>\n According to the CryptoQuant analyst with the name ‘burakkesmeci,’ this phenomenon has been observed more frequently after the US approved the trading of spot exchange-traded funds (ETFs), which currently seems to have amplified the significance of CPI as a leading indicator.<\/p>\n When Coinbase Premium Index is below SMA14, selling pressure increases<\/p>\n \u201cExamining the data for 2024, we clearly see that Bitcoin price corrections have occurred when the CPI (Coinbase Premium Index) fell below its’ SMA14.\u201d \u2013 By @burak_kesmeci<\/a><\/p>\n Link \ud83d\udc47https:\/\/t.co\/Bc3N1cfh5W<\/a> pic.twitter.com\/tN99LNhNkr<\/a><\/p>\n \u2014 CryptoQuant.com (@cryptoquant_com) July 30, 2024<\/a><\/p><\/blockquote>\n The analyst disclosed that for 2024, the data reveals a clear pattern: Bitcoin often faces price corrections when the CPI dips below its SMA14. This specific behaviour points to a bearish sentiment<\/a> when the index falls short of the moving average, signaling increased selling activity.<\/p>\n Currently, the CPI stands at -0.008, contrasting with the SMA14 at 0.020. This discrepancy according to burakkesmeci “indicates that sellers have a stronger hand in the US market.”<\/p>\nBull or Bear: What the Coinbase Index Tells Us<\/h2>\n
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