In a promising development, the price of Bitcoin is edging closer to the coveted $100,000 mark as it trades above $98,000 for the first time since late December.
Crypto analyst Ali Martinez has identified several critical metrics that could indicate further bullish momentum for the leader cryptocurrency as the market begins to recover.
Bitcoin price rises amid low Coinbase Premium index
One of the important indicators discussed with Martinez the Coinbase Premium Index, which recently hit -0.23%, its lowest level in two years. This index measures the price difference between Bitcoin on Coinbase and other exchanges.
A negative premium suggests that US-based investors may be less willing to pay a premium for Bitcoin, but the current rebound may indicate a shift towards institutional interest that is ' growing in the fund.
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Martinez too was noted that the recent rise in the price of Bitcoin comes amid an attractive reversal, with more than 48,000 BTC – worth more than $4.5 billion – withdrawn from exchanges in the past week. This move reflects a supportive sentiment among investors, despite the brief price correction that occurred late last year.
Despite these positive signs, Martinez warns that Bitcoin is at a critical stage. he is pressure the importance of maintaining a close above the 50-day moving average (MA), currently just above $96,000.
Failure to maintain this level could lead to a downward correction. On the other hand, a stable closure above the MA 50-day that could signal the end of the recent correction and confirm a stronger bullish trend.
Strong Uptrend Expected After Wave Three Breakout
In addition to Martinez's comments, Elliot Wave Academy has a technical analysis of the recent Bitcoin price movements, suggesting that the cryptocurrency is currently in the fourth wave of a larger bullish cycle.
The academy's analysis indicates that, after a powerful break from a price channel, Bitcoin has crossed the optimal level of wave three, which could indicate a strong upward trend. The fourth waveaccording to their analysis, characterized by a side pattern after the sharp rise of wave three.
The potential correction zones for this wave have been identified, and if these levels are broken, the next upward wave could target the Bitcoin price range between $117,475.70 and $138,058.37. These figures represent key bullish targets that could attract further investment and move the price of Bitcoin higher.
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Everywhere, as the price of Bitcoin continues its upward trajectory, the combination of large withdrawals from exchangesLow Coinbase Premium Index, and positive Elliott Wave analysis paint a strong picture for the cryptocurrency's future.
However, investors should be vigilant, watching for critical price levels that could determine the next move in the market.
At the time of writing, the market's top crypto is trading at $98,320.
Featured image from DALL-E, chart from TradingView.com
