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This Coinbase Trend Could Signal Another Bitcoin Rally is Imminent
Cole Petersen | Dec 20, 2020 | 19:00
- Bitcoin’s price is inching higher this morning following a bout of weakness seen yesterday
- Its present strength comes as the entire market moves higher, with bulls gaining a serious edge over the cryptocurrency’s price action
- Twitter activity from prominent figures like Elon Musk and others have also boosted the cryptocurrency, sending its price rocketing back towards $24,000
- It remains unclear as to whether or not this will be enough to boost the crypto in the days ahead
- One analyst is noting that the cryptocurrency could be boosted by inflows of capital from USDC whales on Coinbase
Bitcoin and the entire crypto market are showing signs of strength at the moment. Where BTC trends next will depend largely, if not entirely, on whether or not it can flip $24,000 into support.
The selling pressure seen above this level has proven to be intense in the past. A firm break above it, combined with a flip of this level into support, could be enough to spark the next leg higher.
One trader explained in a recent tweet that he is closely watching for the market to see a strong rally higher driven by inflows on Coinbase from USDC whales.
Bitcoin Shows Signs of Strength as Bulls Target $24,000
At the time of writing, Bitcoin is trading down marginally at its current price of $23,800. This marks a notable upswing from its recent lows of $23,100 that were set yesterday.
The selling pressure at $24,000 has been quite intense, and where it trends in the mid-term may depend on its reaction to this level.
The brief break above it seen yesterday was short-lived and resulted in the crypto seeing a strong selloff.
If flipped into support, this level could be a new base for future growth.
This Coinbase Trend Suggests Bitcoin’s Uptrend is Just Getting Started
One on-chain analyst explained in a recent tweet that deposits of USDC onto Coinbase have historically boosted Bitcoin’s price and may continue doing so in the mid-term.
“I think USDC whales on Coinbase know how to play. Whenever these whales deposits to Coinbase, the BTC price is likely to go up. There are deposits from USDC whales recently. I think it could be one of the bullish signals.”
Image Courtesy of Ki Young Ju. Source: BTCUSD on TradingView.
Bitcoin’s upcoming weekly candle close should shed some light on where the entire market is poised to trend in the days ahead.
Featured image from Unsplash. Charts from TradingView.
