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A carefully studied indicator linked to US demand has just shifted direction, suggesting that the current price movement of Bitcoin may be revealing its first indications of respite.
After nearly ten weeks of consistently negative readings – a period that corresponded with Bitcoin's fall from about $95,000 to below $65,000 in February – the Coinbase Premium Gap has returned to positive territory.
Although the latest readings are still in their early stages and rather small when compared to the last slump, they do show that Bitcoin interest may be on the upswing in the US market again.
What this means is that these specific players may be slowly rebuilding their Bitcoin positions.
Still, looking at the big picture of Bitcoin's price history, it looks like there could be further drops before we see a bottom. Some onchain indications are starting to point in the right direction, but many experts are still wary of declaring the bigger downturn over.
The last two major bear market lows, according to TradingView's research, were below the 300-week exponential moving average (300W EMA). Each time, Bitcoin fell more than 15% below the indication before hitting rock bottom.
The current value of Bitcoin's 300-week exponential moving average stands at approximately $57,100.
The application of this methodology suggests a potential adjustment of approximately $50,000, indicating a decrease of about 15% relative to the benchmark.
Nonetheless, this prediction does not guarantee that Bitcoin will reach that level again before finding a bottom.
As per TradingView, the price movement reached a high of above $73,000 before falling.
What Other Technical Readings Show?
TradingView's technical analysis overview for the week ahead, based on key data from moving averages, oscillators, and pivots, showed a sell signal, even as a sub gauge of oscillators showed a neutral reading.
Separately, InvestTech's Algorithmic Overall Analysis and recommendation for one to six weeks gave a positive score, in a stark reversal to recent weeks.
The research firm said, "Bitcoin is in a rising trend channel in the short term. This signals increasing optimism among investors and indicates a continued rise. The token has support at points $66,700 and resistance at points $89,000. Positive volume balance strengthens the currency in the short term."
