Bitcoin Coinbase Premium Index Hits 2024 High as BTC Rallies 5%

The Bitcoin (BTC) Coinbase premium index reached its highest level since February 20 after BTC prices rallied 5% on March 19. This index measures the price difference between Coinbase and Binance prices for BTC pairs, where a higher value signals stronger buying pressure from US investors. The index gauges US retail interest, but it may also signal strong accumulation from US institutions and whales, according to a verified analyst on CryptoQuant. The 30-day EMA of the index crossed the 100-day EMA level, implying the presence of large players. Past trends show that when this indicator rises, BTC bull markets tend to continue, indicating a high likelihood of an accumulation phase and a key moment to monitor BTC’s momentum. Coinbase Pro was integrated into Coinbase Advanced in early 2024, which is used by companies for BTC purchases, suggesting that the Coinbase premium also represents US institutional interest to a certain extent.

One of the major positives observed on BTC’s 1-day chart is the bullish reclaim on the 200-day exponential moving average. When prices remain above the 200-day EMA level, the probability of an uptrend increases for BTC to form higher highs in the chart. After a successful breakout above $85,000 resistance, turning the level into support further improves the possibility of a $90,000 retest. On the daily chart, Bitcoin price also bounced from the lower range of the Bollinger Bands, with the metric’s moving average remaining above the $90,000 level. The bullish narrative is invalidated if a daily candle closes below $85,000 before the end of the week. Michael Van de Poppe, the founder of MN Consultancy, shared a bullish stance and said that he expects a continued run to retest $90,000 over the next few days. However, Max, the founder of BecauseBitcoin, said BTC might have a “little more work to do.” The analyst said the EMA cloud indicators continue suppressing BTC below the $88,000 and $90,000 range. Similarly, crypto trader Koroush AK suggested traders remain cautious until a shift in market structure occurs. The trader noted that Bitcoin prices are currently at a critical level below $90,000; the chance of a correction below $73,000 remains a threat.