The Coinbase Premium Index can help assess short-term momentum through the one-day and one-week moving averages in a one-hour timeframe.
- When the weekly moving average declines, this indicates that buying demand from the US market is decreasing.
- When the two moving averages form a golden cross or dead cross, it often signals short-term price volatility from 1 to 7 days.
Bitcoin and Ethereum have decreased in price since the two moving averages formed a dead cross about a week ago.
- If the index starts to rise and momentum recovers, one can expect prices to increase in the short term.