Despite a recent pullback in the price of Bitcoin, an analyst has pointed to data from an on-chain indicator that suggests a bullish trend is still intact for the leading cryptocurrency. The indicator in question is the Bitcoin Coinbase Flow Pulse, which tracks the total amount of BTC flowing into Coinbase from other centralized exchanges.
In a recent post on X, CryptoQuant author Axel Adler Jr discussed the trend in the Bitcoin Coinbase Flow Pulse, specifically focusing on the 30-day and 90-day simple moving averages (SMAs) of the indicator. The chart shared by the analyst shows a consistent uptrend in both SMAs since early 2023, indicating a long-term trend of increasing inflows to Coinbase from other platforms.
The current positioning of the 30-day SMA above the 90-day SMA suggests that inflows are continuing to accelerate, a pattern typically associated with a bull market for Bitcoin. The periods where this condition has held true are highlighted in green on the chart, with only a few instances of bearish crossovers since the uptrend began.
Despite recent bearish momentum in the Bitcoin price, the Coinbase Flow Pulse indicator has not shown any signs of a bearish cross, leading the analyst to conclude that “the bullish trend persists.” The transfer of BTC from other exchanges to Coinbase is seen as bullish because Coinbase is primarily used by US-based investors, particularly large institutional entities who are often market drivers. Increased inflows to Coinbase indicate rising demand from these users, which can positively impact the cryptocurrency’s value.
In addition to the Coinbase Flow Pulse, another indicator used to gauge demand from American investors is the Coinbase Premium Gap, which measures the difference in Bitcoin prices between Coinbase (USD pair) and Binance (USDT pair). A recent chart shared by an analyst in a CryptoQuant Quicktake post shows a break above the daily level in the 1-hour Bitcoin Coinbase Premium Gap, suggesting an uptick in buying from Coinbase users.
Despite the sideways movement in Bitcoin’s price, which is currently hovering around $61,300, the data from these on-chain indicators points to a continued bullish trend for the cryptocurrency. The analysis serves as a reminder that short-term price fluctuations should be viewed in the context of broader market trends and indicators.