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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 19:29
  • msn.com
  • Keywords: NoImpact, NoCompanies

Bitcoin's Coinbase premium surged to its highest since February, indicating strong US investor interest, potentially signaling a move towards $90K. Technical indicators suggest a bullish trend, but analysts caution risks below $85K.

Coinbase Services

Estimated market influence

Context

Analysis of Bitcoin Coinbase Premium Returns and Market Implications

Key Findings:

  • Bitcoin Price Rally: BTC prices surged by 5% on March 19, driving the Bitcoin Coinbase premium index to its highest level since February 2023.
  • Coinbase Premium Index: This index measures the price difference between Coinbase and Binance BTC pairs, indicating stronger buying pressure from US retail and institutional investors.
  • EMA Cross Signal: The 30-day EMA of the index crossed above the 100-day EMA, signaling potential accumulation by large players like institutions and whales.

Market Implications:

  • US Institutional Interest: The integration of Coinbase Pro into Coinbase Advanced (used by companies like Tesla for BTC purchases) suggests increased institutional interest in Bitcoin.
  • Bullish Momentum: Analysts suggest a high likelihood of continued BTC bull markets, with the 200-day EMA acting as a key support level.

Price Analysis:

  • Resistance Levels: BTC successfully broke above the $85K resistance, turning it into a support level. This increases the probability of testing $90K in March.
  • Bollinger Bands: Bitcoin prices bounced from the lower range of Bollinger Bands, with the moving average remaining above $90K.

Technical Indicators:

  • Bearish Signals: Some analysts warn that EMA cloud indicators could suppress BTC below $88K and $90K, suggesting a cautious outlook.
  • Risk Levels: A daily close below $85K before the end of the week could invalidate the bullish narrative. Risks remain of a correction below $73K.

Competitive Dynamics:

  • Analyst Disagreement:
    • Michael Van de Poppe remains bullish, expecting a run to retest $90K.
    • Max from BecauseBitcoin suggests BTC may need more time to reach higher levels due to EMA cloud suppression.
    • Koroush AK advises caution until a market structure shift occurs.

Long-Term Considerations:

  • Institutional Adoption: The rise in Coinbase premium indicates growing interest from US institutions, potentially driving long-term price appreciation.
  • Regulatory Impact: While not explicitly mentioned, regulatory developments could influence Bitcoin's trajectory and market dynamics.

This analysis highlights the mixed signals in the market, with bullish momentum tempered by technical risks and analyst caution.