Bitcoin has recently seen a 2.28% rise, climbing from a local low of $55,629 to $58,401. This recovery follows a sharp decline to $52,732, raising questions about whether Bitcoin will experience a sustained rally or face another dip. The situation is becoming more intriguing as data from the Coinbase Premium suggests that a major price move could be possible.
Coinbase Premium’s Convergence: A Signal for a Major Move?
One key indicator that analysts are watching is the Coinbase Premium, which reflects the price difference between Bitcoin on Coinbase and Binance. According to the latest 1-hour chart, the volatility in the Coinbase Premium has decreased, and both the upper and lower bounds of the price range are converging into a triangular pattern.
This pattern is often seen as a sign of imminent major price movement. Historically, during the 2021-2022 bull market, a similar triangular convergence was seen in the Coinbase Premium before Bitcoin surged to new all-time highs.
If history repeats itself, this narrowing price gap could suggest that the market is finding its fair value, with a decisive upward or downward move likely on the horizon. Large investors, seem to be in a standoff, waiting for the next big shift in Bitcoin’s price.
BTC Still in a Bearish Phase
While Bitcoin’s recent gains are encouraging, it’s important to note that, BTC remains in a bear phase as it is trading below the $62k price level. Bitcoin’s market value to realized value (MVRV) ratio has been below its 365-day moving average since August 26, signaling bearish market conditions.
Analysts suggest that this bear phase could delay any major rally unless Bitcoin breaks out of this consolidation.
Also Read: Robert Kiyosaki’s Take on Bitcoin: A Game Changer for America’s $35 Trillion Debt?
