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Bitcoin Coinbase premium returns — Is $90K BTC price in the cards?

Bitcoin Coinbase premium returns — Is $90K BTC price in the cards?

  • 20.03.2025 17:46
  • cointelegraph.com
  • Keywords: Bitcoin, Coinbase

The return of the Coinbase premium indicates strong buying pressure from U.S. investors, including institutions and whales, with Bitcoin potentially reaching $90,000 after breaking above $85,000 resistance.

Coinbase ServicesCOINsentiment_satisfiedTSLAsentiment_satisfied

Estimated market influence

Coinbase

Coinbase

Positivesentiment_satisfied
Analyst rating: Buy

The Coinbase premium index reached its highest level since Feb. 20 after BTC prices rallied 5% on March 19.

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Coinbase Pro was integrated into Coinbase Advanced (a platform used by companies like Strategy and Tesla for BTC purchases) in early 2024.

Context

Analysis: Bitcoin Coinbase Premium Returns and Market Implications

Key Highlights

  • Coinbase Premium Index:

    • Reached its highest level since February 20 after Bitcoin prices surged 5% on March 19.
    • Indicates strong buying pressure from US retail investors, with potential institutional interest as well.

  • Technical Analysis:

    • The 30-day EMA of the index crossed above the 100-day EMA, signaling possible accumulation by large players (whales and institutions).
    • Bitcoin’s price broke above $85K resistance, turning it into support, increasing chances of a rally to retest $90K.

  • Market Sentiment:

    • Analysts like Michael Van de Poppe remain bullish, expecting a continued run to $90K.
    • Other experts, such as Max from BecauseBitcoin, caution that Bitcoin’s EMA cloud indicators are suppressing prices below $88K and $90K.

Bitcoin Price Outlook

  • Bullish Signals:

    • BTC price is above the 200-day EMA (orange line), increasing probability of an uptrend.
    • Bounced from lower Bollinger Bands, with MA above $90K.

  • Bearish Risks:

    • A daily close below $85K could invalidate the bullish narrative and trigger a correction.
    • Some traders remain cautious until a market structure shift occurs.

Competitive Dynamics

  • Institutional Interest:
    • Coinbase Pro integration into platforms like Strategy and Tesla suggests increased institutional activity on Coinbase.

Strategic Considerations

  • Monitoring Key Levels:
    • Critical levels at $85K (support/resistance) and $90K (potential target).
    • RSI levels and market structure shifts are key indicators to watch.

Long-Term Effects and Regulatory Impacts

  • Regulatory Environment:
    • No direct mention of regulatory changes, but ongoing market dynamics could influence future policy.

Conclusion

The return of the Coinbase premium highlights strong US demand for Bitcoin, with technical indicators suggesting a bullish trend. However, risks remain, particularly if prices fail to hold above $85K. Investors should monitor key levels and market sentiment closely.