Analysis suggests that Bitcoin might rebound from its recent dip as demand continues to be high in the United States.

According to a recent post by an on-chain analytics platform, there is a “possibility of a short-term BTC increase.”

Golden Cross Signals Potential for Short-Term Recovery

Bitcoin (BTC) has experienced several tests of the $60,000 support level this week amidst concerns related to the geopolitical situation in the Middle East.

Despite these challenges, signs indicate strong ongoing demand, as suggested by the Coinbase premium metric.

The Coinbase premium tracks the price difference between BTC/USD on Coinbase, one of the largest US exchanges, and the equivalent trading pair on Binance.

According to a contributor from CryptoQuant, moving averages associated with the Coinbase premium often correlate with specific BTC price trends.

“We analyzed the Coinbase Premium Index on a 1-hour basis to observe short-term momentum, utilizing the daily and weekly moving averages for context,” the contributor noted.

“Historically, when the daily moving average crosses above the weekly moving average (a golden cross), we have seen significant price moves shortly thereafter.”

This “golden cross” situation was last observed late last month when Bitcoin surged above $66,000.

Despite the subsequent price correction to around $61,000 at the start of October, ongoing demand from US investors suggests renewed upward pressure.

The analysis concluded that this consistent demand, highlighted by the Coinbase premium, may indicate a potential short-term recovery for Bitcoin’s price.

Continued Strong Demand from US Investors

Coinbase has revealed a favorable premium over Binance in recent weeks, which is a positive sign for BTC’s price performance.

Overall, exchanges continue to note large withdrawals as BTC/USD tests key support levels, with volumes reaching their highest levels since the FTX incident in November 2022.

Utilizing the Coinbase Flow Pulse tool, which measures inflows to Coinbase from other exchanges, another contributor at CryptoQuant shared similar insights about price prospects.

“The Bitcoin inflow to Coinbase from all exchanges remains positive, indicating strong demand in the US market,” he mentioned to his followers on social media along with a chart on October 4.

“Despite the local pullback, the bullish trend persists.”

This content does not provide investment advice. All investments carry risks, and it is important for readers to conduct their own research prior to making any financial decisions.