The Coinbase Premium Index provided by CryptoQuant refers to the value obtained by subtracting the coin price on the Binance exchange from the coin price on the Coinbase Pro exchange. The higher the premium, the stronger the buying pressure from US investors. There are reports that since the BTC spot ETF was approved in the US, the influence of US investors on the BTC price has increased. Therefore, it is important to look at the movements of the Coinbase exchange they mainly use.
We analyzed the short-term momentum of the Coinbase Premium Index by setting it to a 1-hour time frame and using the daily (24-hour) and weekly (168-hour) moving averages.
As a result, in the case of 📈golden crosses, where the 🔴daily moving average line rises through the 🔵weekly moving average line, the price rises immediately, and conversely, in the case of 📉dead crosses, the price appears to fall.
🎯Currently, we are observing the 24hr MA trying to break above the 7DMA. It will be interesting to see whether the price rise will follow.
Of course, there is a possibility of false signals, but we expect it to be a useful indicator for swing traders.
Written by Yonsei_dent