An analyst has indicated that an on-chain indicator could imply that Bitcoin’s bullish trend remains intact, despite the recent price slump.
Positive Signals from Bitcoin Coinbase Flow Pulse
In a recent post on X, CryptoQuant analyst Axel Adler Jr discussed the current Bitcoin Coinbase Flow Pulse trend. This indicator tracks the net Bitcoin entering Coinbase from other exchanges.
The following chart illustrates the 30-day and 90-day simple moving averages (SMAs) of this indicator over the years:
The graph indicates that both the 30-day and 90-day SMAs of the Bitcoin Coinbase Flow Pulse have been rising since early 2023, pointing to a consistent increase in inflows to Coinbase from other platforms.
Currently, the 30-day SMA exceeds the 90-day, indicating that inflows are increasing. Typically, when the short-term SMA is above the long-term SMA, Bitcoin is regarded to be in a bullish market.
Periods of this condition are highlighted in green, showing that the indicator has only experienced brief bearish crosses since the uptrend commenced.
Even though Bitcoin has faced some downward pressure recently, the indicator has yet to show signs of a bearish trend. The analyst concludes, “Despite the local pullback, the bullish trend persists.”
The significance of transfers from other exchanges to Coinbase is rooted in its user base, which predominantly consists of U.S. investors, particularly larger institutional ones who influence market dynamics.
Rising inflows into Coinbase suggest increased demand from these users, potentially impacting Bitcoin’s price positively. Additionally, the Coinbase Premium Gap is another crucial metric for assessing American investor demand.
This indicator measures the price difference between Bitcoin on Coinbase (in USD) and Binance (in USDT), reflecting the differing behaviors of U.S. and international users.
The following chart displays the 1-hour metrics of this indicator, shared by the analyst in a CryptoQuant Quicktake post.
The analyst pointed out that the 1-hour Coinbase Premium Gap recently broke above its daily average, signaling a potential increase in buying activity among Coinbase users.
Current BTC Price
Since a decline at the beginning of the month, Bitcoin has been trading sideways, currently around $61,300.
