When the Coinbase Premium Index is below its SMA14, selling pressure on Bitcoin increases.
Examining the data for 2024, we clearly see that Bitcoin price corrections have occurred when the CPI (Coinbase Premium Index) fell below its' SMA14.
Especially after the approval of Spot ETFs in the US, the CPI data has become a much more effective leading indicator for price tracking. I find using the CPI data in conjunction with the SMA14 to be more successful for monitoring short-term trends.
Currently, the CPI is at -0.008 and the SMA14 is at 0.020. This indicates that sellers have a stronger hand in the US market.
Written by burakkesmeci
