Bitcoin, Ethereum, Dogecoin Surge Amid Heightened US Demand for Bitcoin: Analyst Highlights 'Sell Signal' On BTC Daily Chart
The cryptocurrency market experienced a surge in major cryptocurrencies on Thursday evening, driven by strong demand from US investors for Bitcoin (BTC). The price of Bitcoin has reached its highest premium in nine months on the US-based crypto exchange Coinbase, according to the "Coinbase Premium Index" from analytics firm CryptoQuant.
The surge in Bitcoin's price on Coinbase is reflected in the index, which reached a peak reading of 0.12 on Thursday, the highest since May 2023. CryptoQuant suggested that the high premium values could indicate the strong buying pressure from US investors on Coinbase.
This surge in demand for Bitcoin contributed to the overall growth of the global cryptocurrency market, which now has a market cap of $1.94 trillion, showing a 3.61% increase in the past 24 hours.
In Wednesday's trading session, stocks made a recovery on Wall Street, with the S&P 500 advancing by 0.96% to reach a closing figure of 5,000.62. The Nasdaq Composite saw a strong climb of 1.3%, settling at 15,859.15, while the Dow Jones Industrial Average added 151.52 points, representing a 0.4% increase, and closed at 38,424.27.
Cryptocurrency analysts are offering tips and insights for investors considering entering the Bitcoin or cryptocurrency markets. Michael Van de Poppe advised against making emotional decisions, emphasizing the importance of not giving in to the rush and instead waiting for opportunities during 20-30% corrections. Pseudonymous trader Rekt Capital highlighted the cyclical nature of Bitcoin's performance, noting that doubts usually arise during pullbacks and rallies.
Gart van Lagen, a historical patterns expert, pointed out that previous blow-off waves of Bitcoin have sharply reached the blue trendline in a parabolic manner. He suggests that the current blow-off wave is in the fourth or fifth stage, and the price is expected to target $200k at the blue trendline before the halving.
However, on-chain analyst Ali Martinez issued a warning based on the TD Sequential indicator, which presents a sell signal on Bitcoin's daily chart. This indicates a potential correction of one to four daily candlesticks. It is worth noting that all buy and sell signals from this indicator since December 2023 have been validated.
As the demand for Bitcoin and other cryptocurrencies continues to rise, investors are advised to approach this volatile market with caution and follow expert advice to navigate potential risks and opportunities.
Analyst comment
Positive news: Bitcoin, Ethereum, and Dogecoin are surging amid heightened US demand. The Coinbase premium index for Bitcoin reached its highest level since May 2023, indicating strong buying pressure. The global cryptocurrency market cap has increased by 3.61% in the past 24 hours.
Neutral news: The stock market made a recovery on Wednesday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all showing gains.
Negative news: Analysts warn of potential corrections and pullbacks in Bitcoin’s price, with sell signals on the daily chart and historical patterns suggesting a potential correction before the halving.
As an analyst, the market is expected to continue its bullish trend in the short term due to the heightened US demand for Bitcoin and the overall increase in the cryptocurrency market cap. However, caution is advised as corrections and pullbacks may occur, presenting opportunities for entry.
