At 03:04 AM on January 3, the Coinbase Premium Index surged above its 14-day Simple Moving Average (SMA14) for the first time in 26 days. But what does this signal?
As highlighted in my "Preset Alert" titled "When Coinbase Premium Index Surges Above SMA14, Signaling Bitcoin Buyer Dominance," this event is an early indicator that U.S.-based buyers are regaining dominance in the market.
Example
To better understand this, let’s revisit a similar scenario:
On November 1, 2024, the Coinbase Premium Index broke above its SMA14.
This signaled strong buyer activity, and Bitcoin subsequently rallied from $69,000 to $108,000, setting a new all-time high (ATH).
Conclusion
As long as the Coinbase Premium Index remains above the SMA14, it will likely continue testing the positive zone. This suggests that U.S.-based buyers could exert stronger influence over Bitcoin’s price trajectory.
Written by burakkesmeci
