By Chris Hollingworth 
The Bitcoin (BTC) Coinbase premium index surged to its highest level since February 20 following a 5% rally in BTC prices on March 19, signaling renewed interest in the cryptocurrency. The Coinbase premium index, which measures the price variance between BTC pairs on Coinbase and Binance, serves as an indicator of US investors’ buying pressure. Notably, a higher premium suggests a stronger demand from US investors, including retail traders, institutions, and whales.
According to Woonminkyu, an analyst at CryptoQuant, the recent uptick in the Coinbase premium index may indicate significant accumulation by US institutional investors and whales. The crossing of the 30-day exponential moving average (EMA) over the 100-day EMA further reinforces the presence of large players in the market. Historically, a rising premium index has often coincided with continued bull markets for BTC, highlighting the current accumulation phase as a pivotal moment to monitor Bitcoin’s momentum.
The integration of Coinbase Pro into Coinbase Advanced in early 2024 has likely contributed to the heightened institutional interest in BTC, adding another layer to the significance of the Coinbase premium index. As the market anticipates Bitcoin’s next move, analysts are closely watching key technical levels. The recent bullish breakout above the $85,000 resistance level, now turned support, sets the stage for a potential retest of the $90,000 mark.
On the 1-day chart, Bitcoin’s price reclaiming the 200-day exponential moving average (EMA) signals a positive trend, increasing the likelihood of higher highs in the price chart. Additionally, bouncing off the lower Bollinger Bands range and maintaining the moving average above $90,000 further bolsters the bullish case for BTC. However, a daily close below $85,000 could invalidate the current bullish narrative.
While some analysts like Michael Van de Poppe foresee a continued uptrend towards the $90,000 level in the coming days, others like Max caution that BTC might face resistance around $88,000 and $90,000 due to EMA cloud indicators. It is essential to monitor the market structure closely, as traders remain cautious given the critical price level below $90,000 and the potential for a correction below $73,000.
In conclusion, the recent surge in the Coinbase premium index and technical indicators suggest a mix of bullish and cautious sentiments in the Bitcoin market. As always, it is important for investors to conduct thorough research and carefully evaluate risks before making any investment decisions.
